Core Insights - Exxon Mobil Corporation (XOM) has entered into an agreement to acquire a 40% joint interest in the Bahia natural gas liquids (NGLs) pipeline from Enterprise Products Partners (EPD), which is currently in the commissioning phase and expected to begin commercial services soon [1][8] Group 1: Agreement Details - Under the agreement, ExxonMobil will contribute $650 million towards the construction costs of the pipeline project [2] - The Bahia NGL pipeline will span 550 miles and transport NGLs from the Midland and Delaware basins to EPD's Mont Belvieu fractionation facility in Texas, with an initial transportation capacity of 600,000 barrels per day (bbl/d) [2][8] - The transaction is expected to be finalized by early 2026 [2] Group 2: Planned Expansion - ExxonMobil and Enterprise plan to expand the Bahia pipeline's capacity to 1 million bbl/d after the deal closes, which includes enhancing pumping capacity and constructing a 92-mile extension to ExxonMobil's Cowboy natural gas processing plant in Eddy County, NM [3] - The expansion project is anticipated to be completed by the fourth quarter of 2027 [3] Group 3: Market Context - The NGL production from the Permian Basin is expected to increase by more than 30% between 2024 and 2030, driving the need for midstream investments like the Bahia pipeline [4] - The Bahia pipeline will be crucial for transporting the growing NGL volumes from the Permian to the Mont Belvieu fractionation complex, benefiting both ExxonMobil and Enterprise [4]