Exxon Mobil has agreed to acquire a 40% interest in Enterprise Products Partners’ Bahia natural gas liquids pipeline, a deal that will see the companies team up to expand one of the most significant NGL transport networks feeding the U.S. Gulf Coast.

Enterprise disclosed that Exxon will reimburse roughly $650 million for its share of the investment already made on the project. The transaction is expected to be completed by early 2026.

Under the partnership, the two firms intend to lift the system’s future capacity to 1 million barrels per day, up from the 600,000 bpd the line will handle when it begins commercial service. The boost will come from new pumping stations and a planned 92-mile extension linking the pipeline to Exxon’s Cowboy gas processing facility in Eddy County, New Mexico.

The 550-mile Bahia system, currently in its commissioning phase, is designed to move mixed NGLs from the Delaware and Midland basins to Enterprise’s major processing hub in Mont Belvieu, Texas. With NGL production in the Permian Basin rising faster than crude output, Enterprise says the expanded network will play a critical role in transporting increasing volumes to market.

Enterprise co-CEO Jim Teague noted that NGL production in the Permian is projected to climb more than 30% between 2024 and 2030, reinforcing the need for additional takeaway capacity.

The New Mexico link — which will also connect to several Enterprise-operated plants in the Delaware Basin — is scheduled for completion in the fourth quarter of 2027. Exxon’s portion of the build-out will operate under the name Cowboy Connector, while Enterprise will remain the operator of the integrated system.