Enterprise Products Partners LP (NYSE: EPD) announced April 30 it has entered into an agreement with an Occidental Petroleum Corp. (NYSE: OXY) affiliate to jointly develop a new 150 million cubic feet per day (MMcf/d) cryogenic natural gas processing plant.

The plant will accommodate the growing production of NGL-rich natural gas in the Delaware Basin. The 50:50 joint venture developing the plant is Delaware Basin Gas Processing LLC. The plant, which is supported by long-term, firm contracts, is expected to begin operations in mid-2016. Enterprise will serve as the construction manager and operator of the plant.

In addition to the processing plant, Enterprise will construct, own and operate a 12-inch diameter pipeline that will transport NGL from the new facility to one of Enterprise’s NGL pipelines, which will provide customers with access to Enterprise’s NGL fractionation and storage complex in Mont Belvieu, Texas. The partnership’s Texas Intrastate Pipeline system will provide natural gas at the tailgate of the plant with access to multiple markets.

“This new facility, combined with Enterprise’s recently announced 200 MMcf/d cryogenic processing plant being built in Eddy County, N.M., reflects the company’s commitment to providing producers in the Permian Basin with flow assurance and market choices,” said A.J. “Jim” Teague, COO of Enterprise’s general partner. “When completed, the two plants will increase Enterprise’s net natural gas processing capacity in the Permian Basin to more than 600 MMcf/d.”