ExxonMobil has made a significant investment and entered into a partnership with Enterprise Products Partners to expand the capacity of the Bahia natural gas liquids (NGL) pipeline, a key piece of Permian Basin infrastructure. 

The agreement, announced on Thursday, Nov. 21, will increase the pipeline’s daily transportation capacity by 400,000 barrels, bringing the total capacity to 1 million barrels per day.

The move is cemented by ExxonMobil’s acquisition of a 40% stake in the Bahia pipeline, aimed at consolidating the company's presence in the midstream sector, which handles the processing, storage, and transport of oil and gas.

According to the announcement, the expansion plan includes a 92-mile extension of the infrastructure into Eddy County, New Mexico. This new segment will integrate with an existing ExxonMobil natural gas processing plant, strengthening the now unified “Cowboy Connector” system.

Additionally, the extension will connect strategic assets in the Permian Basin directly to Mont Belvieu, Texas, a major Gulf Coast hub for NGL processing and fracking materials. 

With the integrated system, the new pipeline is expected to facilitate the efficient transportation of raw NGLs to facilities where they are processed into essential inputs for the chemical and manufacturing industries, while also bolstering export routes to global markets.

This large-scale infrastructure upgrade is a direct response to a forecasted boom in NGL production, with Enterprise noting that it would be key in handling output from the Permian Basin, which is projected to increase by more than 30% between 2024 and 2030. 

ExxonMobil believes this investment optimizes its operational integration and supports its sustained production growth in the region.

With the transaction scheduled to close in early 2026, the expanded pipeline infrastructure is projected to be fully operational by the last quarter of 2027.