Exxon Mobil announced it will purchase a 40% undivided interest in Enterprise Products Partners’ Bahia natural‑gas liquids pipeline, a key midstream asset that serves the Permian Basin and feeds the Gulf Coast refining network.
The deal includes a planned expansion that will raise the pipeline’s throughput from its current 600,000 barrels per day to 1 million barrels per day. The expansion adds pumping capacity and a 92‑mile extension that connects the pipeline to ExxonMobil’s Cowboy natural‑gas processing plant in New Mexico. Exxon will hold a 70% interest in the new “Cowboy Connector” segment.
The transaction is expected to close in early 2026, subject to regulatory approvals, and the expansion is slated for completion in the fourth quarter of 2027. Enterprise Products will continue to operate the combined system, while Exxon’s investment of approximately $650 million in project costs reflects its commitment to securing long‑term supply and logistics flexibility.
Strategically, the acquisition strengthens Exxon’s vertical integration by linking its Permian upstream production to Gulf Coast downstream facilities. Enterprise’s rationale for partnering with Exxon is to bring in capital and expertise to accelerate the pipeline’s capacity growth, positioning both companies to capture the projected 30%+ rise in Permian NGL output through 2030.
Exxon reported a net income of $7.5 billion for the quarter ended September 30 2025, a 12% decline from $8.6 billion a year earlier, yet the company remains well‑capitalized to fund the expansion and other midstream initiatives.
"The Bahia pipeline is an essential artery for delivering mixed NGLs to the Mont Belvieu fractionation complex," said A.J. “Jim” Teague, co‑chief executive officer of Enterprise’s general partner. “Partnering with ExxonMobil gives us the scale and resources needed to meet the growing demand from the Permian Basin.”
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