Exxon Mobil will acquire a 40‑percent undivided interest in Enterprise Products Partners’ 550‑mile Bahia natural‑gas liquids (NGL) pipeline, a deal that will give the oil major a dedicated export route for NGLs from the Permian Basin to the Gulf Coast. The transaction is expected to close by early 2026, subject to regulatory approval.
The Bahia pipeline, which has already begun commissioning activities, is designed to move 600,000 barrels per day (bpd) of mixed NGLs. Management has outlined a plan to expand the line to 1 million bpd by 2027, adding a 92‑mile “Cowboy Connector” that will link the pipeline directly to Exxon’s Cowboy natural‑gas processing plant in the Permian. The expansion is driven by projected NGL production growth of more than 30 percent in the basin through 2030.
Enterprise Products sees the partnership as a way to secure a long‑term customer and capital for the pipeline, while Exxon aims to strengthen its midstream footprint and secure a reliable export corridor for its growing Permian output. The deal aligns with Exxon’s strategy to integrate upstream, midstream, and downstream operations and to capture higher margins from NGLs, which are key inputs for petrochemicals and plastics manufacturing.
Enterprise Products’ NGL Pipelines & Services segment remains a core profit driver, contributing a significant portion of the company’s earnings. In Q3 2025, the company reported net income attributable to common unitholders of $1.3 billion, slightly below the $1.4 billion recorded in the same quarter a year earlier, but management highlighted upcoming projects—including the Bahia expansion—that are expected to offset the dip and support future growth.
A.J. “Jim” Teague, co‑chief executive officer of Enterprise’s general partner, noted that the increasing ratio of natural gas and NGL production to crude oil in the Permian makes the Bahia pipeline an essential artery for delivering mixed NGLs to the fractionation complex in Mont Belvieu. He added that the partnership will support the projected 30 percent rise in Permian NGL output through 2030, ensuring the pipeline’s capacity keeps pace with production growth.
The transaction underscores the broader trend of integrated oil majors investing in midstream infrastructure to secure supply chains and capture higher‑margin products. By acquiring a stake in the Bahia pipeline, Exxon positions itself to benefit from the Permian’s robust growth while providing Enterprise with a stable, long‑term partner and capital infusion for its expansion plans.
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