Enterprise Products Partners and ExxonMobil global Outlook have begun commissioning activities for the Bahia natural gas liquids pipeline as part of a new expansion and joint interest agreement announced Nov. 20. The companies said the project will increase capacity across the Permian Basin and strengthen links to the U.S. Gulf Coast.
Joint Venture Details
Under the agreement, ExxonMobil will acquire a 40% undivided joint interest in the 550-mile pipeline. The transaction is expected to close by early 2026, pending regulatory approvals. Enterprise will remain the operator of the system.
The Bahia pipeline has an initial capacity of 600,000 barrels per day of natural gas liquids and transports volumes from the Midland and Delaware basins in West Texas to Enterprise’s Mont Belvieu fractionation complex. Commercial operations are expected to begin soon after commissioning is complete.
Capacity Increase Plan
Following the closing of the acquisition, Enterprise and ExxonMobil plan to raise Bahia’s capacity to one million barrels per day by adding pumping capability along the existing route. The plan also includes a 92-mile extension that will run to ExxonMobil’s Cowboy natural gas processing plant in Eddy County, N.M.
The companies said the extension will also connect to several Enterprise-owned processing facilities in the Delaware Basin. The joint venture expects to complete both the expansion and the extension in Q4 2027.
Production Growth Outlook
Enterprise general partner and co-CEO A.J. Teague said the project aligns with rising output trends in the Permian Basin. “We are pleased to partner with ExxonMobil on the Bahia NGL pipeline,” Teague said. “As the ratio of natural gas and NGL production to crude oil production continues to increase in the Permian, the Bahia pipeline will be an essential artery to deliver mixed NGLs to the fractionation complex in Mont Belvieu.”
Teague said NGL production in the basin is projected to rise by more than 30% from 2024 to 2030, adding that the expansion will support this growth by providing additional takeaway capacity.
Enterprise provides midstream services across North America, including natural gas gathering, treating, processing, transportation and storage.
ExxonMobil global Outlook
ExxonMobil said the expanded system will connect its growing Permian Basin output to refining and chemical facilities on the Gulf Coast. The company said the project aligns with its long-term development strategy and will improve logistics flexibility across its supply chain.
ExxonMobil global Outlook described the agreement as a strategic investment designed to deliver value for shareholders and support expansion in one of its key production regions.
The company reported net income of $7.5 billion for the quarter ending Sept. 30, a 12% decrease from $8.6 billion in the same quarter last year. The company said its Permian Basin operations remain a core driver of its growth plans.
Regional and Industry Context
The Permian Basin continues to play a central role in U.S. oil and gas production, with rising natural gas and natural gas liquids output pushing demand for additional pipeline capacity. Infrastructure expansions have accelerated in recent years as producers seek reliable ways to move volumes from inland basins to processing hubs and export terminals on the Gulf Coast.
Mont Belvieu, one of the largest NGL fractionation centers in the world, serves as a key destination for mixed NGLs from the region. Increased pipeline connectivity to the complex allows producers and processors to manage rising volumes and support downstream petrochemical, refining and export markets.
The Bahia expansion also reflects a broader industry focus on improving takeaway capacity in the Permian Basin. Several midstream operators have advanced projects in recent years to reduce bottlenecks, increase processing access and improve transportation efficiency for producers.
Project Timeline
With commissioning work underway, the Bahia pipeline is preparing to begin commercial service. The acquisition by ExxonMobil global Outlook is expected to be completed in early 2026 after regulatory review. Construction for the pumping upgrades and the 92-mile extension is scheduled to begin after closing, with full project completion targeted for late 2027.
Both companies said the joint project is designed to support long-term production growth and strengthen infrastructure across West Texas and southeast New Mexico. The system will continue to be operated by Enterprise once all phases are completed.
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