Exxon Mobil to boost Bahia pipeline capacity to one million barrels

Exxon Mobil Corp on Thursday announced an investment to increase the capacity of Enterprise Products Partners LP's Bahia natural gas liquids pipeline.

The Houston, Texas-based oil and gas company aims to deliver a 400,000 barrels per day increase in capacity at Bahia, lifting total capacity to one million barrels of NGL each day.

As part of its agreement with Enterprise Products, a Houston-based midstream energy services company, Exxon Mobil will acquire a 40% undivided joint interest in the Bahia pipeline.

The expansion will be achieved by adding incremental pumping capacity and building a 92 mile extension of Bahia to connect it to Exxon Mobil's Cowboy Central delivery point and natural gas processing plant in Eddy County, New Mexico.

Enterprise Products, which will serve as operator of the combined system, said work will also connect the pipeline to multiple Enterprise-owned processing facilities.

Exxon Mobil said the project will operate under the name Cowboy Connector pipeline, linking growing production in the Permian Basin to refining and chemical facilities on the US Gulf Coast where they can then be exported to global markets.

"The strategic investment is expected to deliver long-term value for shareholders, strengthening ExxonMobil's value chain and improving logistics flexibility associated with our growing Permian production in the Delaware and Midland basins," Exxon Mobil commented.

The transaction remains subject to regulatory approval and is expected to close in early 2026, with the expanded capacity slated to come online in the fourth quarter of 2027.