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The midstream operator is advancing 600 MMcf/d of new Permian processing capacity and a 150 MBPD Mont Belvieu fractionator while targeting a year-end startup for its Houston Ship Channel LPG export expansion.
Published by Allstream Insiders
Allstream Insiders Summary
Enterprise Products Partners approved construction of two 300 million-cubic-feet-per-day (MMcf/d) natural gas processing plants in the Permian Basin and a 150,000-barrel-per-day (MBPD) natural gas liquids fractionator at its Mont Belvieu complex during the second quarter of 2026.
The newly approved facilities include Plant 13 in the Delaware Basin, expected to enter service in the third quarter of 2028; Plant 11 in the Midland Basin, expected to begin service in the first quarter of 2029; and Frac 15 at Mont Belvieu, for which Enterprise did not provide a startup date in its earnings release.
Enterprise said the approvals brought its total organic growth projects under construction to $6.5 billion. That amount represents the partnership’s aggregate construction portfolio and was not disclosed as the cost of the three newly approved projects.
The company also reported that the second phase of its Neches River Terminal in Texas was placed into service during the quarter. Its next major scheduled project completion is the expansion of the LPG export marine terminal on the Houston Ship Channel, which Enterprise expects to begin operations by year-end 2026.
Enterprise approves 600 MMcf/d of Permian gas processing capacity
The two newly approved processing plants will add a combined 600 MMcf/d of nameplate capacity across the Delaware and Midland basins.
Plant 13 is planned for Enterprise’s Delaware Basin system and carries an expected in-service date in the third quarter of 2028. Plant 11 is planned for the Midland Basin and is expected to begin service in the first quarter of 2029.
Enterprise connected the investments to continued Permian production growth and the need for additional processing capacity.
The earnings release did not disclose individual capital costs, precise sites, contractors, construction schedules or customer commitments for Plant 13 or Plant 11.
Frac 15 will add 150 MBPD at Mont Belvieu
Enterprise also approved Frac 15, a new 150 MBPD NGL fractionator at its Mont Belvieu-area complex. The company did not state an expected completion date or individual project value for the fractionator.
The project follows Frac 14, which Enterprise placed into service in the fourth quarter of 2025.
Enterprise’s disclosed project tracker
| Project | Location | Disclosed capacity | Reported stage | Expected timing |
|---|---|---|---|---|
| Plant 13 | Delaware Basin | 300 MMcf/d | Construction approved | Third quarter 2028 |
| Plant 11 | Midland Basin | 300 MMcf/d | Construction approved | First quarter 2029 |
| Frac 15 | Mont Belvieu area | 150 MBPD | Construction approved | Not disclosed |
| Neches River Terminal Phase 2 | Orange County, Texas | Flexible capacity previously described as up to 180 MBPD of ethane or 360 MBPD of propane | Listed as placed in service; management also referenced commissioning activity | Completed during the second quarter of 2026 |
| Enterprise Hydrocarbons Terminal LPG expansion | Houston Ship Channel | Approximately 300 MBPD of added propane and butane export capability | Next major project scheduled for completion | Operations expected by year-end 2026 |
The $6.5 billion construction figure applies to Enterprise’s wider portfolio of organic growth projects. The company did not allocate that amount among the projects in the table.
Neches River Terminal Phase 2 advances export capacity
Enterprise listed the second phase of its Neches River Terminal as placed into service during the quarter. Management separately described the expansion as having accelerated through construction and into commissioning activities.
Enterprise previously described Phase 2 as a flexible refrigeration train capable of handling as much as 180 MBPD of ethane or 360 MBPD of propane, or a combination of the two products. That capacity was presented in an earlier investor deck and was not restated in the second-quarter earnings release.
Houston Ship Channel LPG expansion targets year-end operations
Enterprise identified its Enterprise Hydrocarbons Terminal expansion on the Houston Ship Channel as the next major capital project scheduled for completion. The partnership expects the expansion to begin operations by the end of 2026.
In its original 2024 project announcement, Enterprise said the added refrigeration would increase propane and butane export capability by approximately 300 MBPD, raise instantaneous loading rates and make additional capacity available for propylene exports. The second-quarter 2026 earnings release did not provide the remaining capital requirement or a more specific startup date. The year-end target is forward-looking and remains subject to construction, commissioning and operating conditions.
Enterprise maintains a multi-billion-dollar capital program
Enterprise invested $1.2 billion during the second quarter, including approximately $1.0 billion for growth capital projects and $140 million for sustaining capital expenditures.
For full-year 2026, the partnership expects growth capital spending of $2.9 billion to $3.4 billion, net of $599 million in asset-sale proceeds, along with approximately $600 million of sustaining capital expenditures.
Allstream analysis: The portfolio creates a multi-year construction runway
Enterprise’s latest approvals establish two distinct development windows. The Houston Ship Channel LPG expansion represents the near-term milestone, with operations expected by the end of 2026. Plant 13 and Plant 11 extend the processing construction schedule into 2028 and 2029, while Frac 15 adds another Mont Belvieu fractionation project without a disclosed startup date.
For engineering, equipment and industrial-service firms, gas processing plants, NGL fractionators and marine export expansions typically involve civil construction, process equipment, compression, electrical systems, automation, measurement, inspection and commissioning work and are sometimes modular design and fabrication. Enterprise did not announce contractor awards, procurement packages or bid schedules for the projects in this earnings release, so no specific commercial opportunity should be inferred.
The most important near-term items to monitor are the operating startup of the Houston Ship Channel LPG expansion, additional scope and timing for Frac 15, and future disclosures concerning construction progress for Plant 13 and Plant 11.
