November 20, 2025 — ExxonMobil announced a major midstream investment to expand the capacity of the Enterprise Products Bahia Natural Gas Liquids (NGL) Pipeline, a critical piece of infrastructure supporting the company’s rapidly growing production in the Permian Basin. The project includes a significant 400,000-barrel-per-day increase, boosting the system’s full capacity to 1 million barrels per day and positioning it as one of the most important NGL conduits in the United States.
Strengthening NGL Infrastructure to Support Long-Term Permian Basin Growth
The Permian Basin remains one of ExxonMobil’s core growth regions. As production continues to rise in both the Delaware Basin and the Midland Basin, the need for robust, scalable NGL infrastructure has become increasingly critical.
This expansion of the Bahia pipeline enhances ExxonMobil’s ability to efficiently transport natural gas liquids from upstream operations to the U.S. Gulf Coast, where the company’s refining and chemical facilities convert raw NGLs into valuable feedstocks and products. These include essential materials used in plastics manufacturing, chemical processing, fuels, and everyday consumer goods.
Introducing the “Cowboy Connector Pipeline” Extension
As part of the investment, ExxonMobil plans to construct a new pipeline extension linking the company’s Cowboy Central Delivery Point in Eddy County, New Mexico, directly to the Bahia system. This extension will operate under the name “Cowboy Connector Pipeline.”
The Cowboy Connector is designed to:
- Improve transportation efficiency for ExxonMobil’s rising NGL volumes
- Enhance local takeaway capacity in southeastern New Mexico
- Provide a direct, integrated path to the Gulf Coast’s world-scale refining and petrochemical hubs
- Support access to export logistics for global markets including Asia, Europe, and South America
This expanded connectivity strengthens ExxonMobil’s competitive advantage in scale, integration, and supply chain optimization, ensuring that the company can move growing NGL volumes with greater reliability and reduced logistical bottlenecks.
Enhancing the U.S. Gulf Coast Petrochemical Supply Chain
The Gulf Coast is home to some of the world’s largest and most advanced petrochemical complexes. By increasing pipeline throughput and improving raw NGL access, ExxonMobil enhances the reliability and flexibility of its petrochemical production chain.
The additional pipeline capacity ensures a steadier flow of NGL mix—components that, once fractionated, become products such as:
- Ethane, a key feedstock for plastics
- Propane, used in petrochemical cracking units
- Butanes and natural gasoline, essential for blending and manufacturing
These materials underpin a wide range of products essential to modern life, from packaging and automotive parts to medical equipment and electronics.
Strategic Benefits for ExxonMobil’s Long-Term Vision
This investment demonstrates ExxonMobil’s commitment to:
- Scaling Permian Basin production efficiently
- Strengthening midstream infrastructure
- Enhancing its fully integrated value chain from wellhead to manufacturing
- Supporting growing global demand for petrochemical feedstocks
- Expanding export capabilities through the U.S. Gulf Coast
By improving transportation efficiency and strengthening access to key markets, the project is expected to deliver durable long-term value to shareholders and reinforce ExxonMobil’s global competitive position.
Timeline and Regulatory Milestones
The transaction is currently undergoing regulatory review and is expected to close in early 2026. The expanded pipeline capacity—including the Cowboy Connector Pipeline—is scheduled to become operational by late 2027, aligning with ExxonMobil’s targeted production ramp-up in the Permian Basin.