Dallas-based Producers Midstream II, LLC mentioned it entered into definitive agreements to “considerably” develop its gathering, treating, and processing infrastructure in Lea County, New Mexico, with undisclosed Permian Basin operators.
The section two growth of Producers Midstream’s Delaware Basin system goals to extend processing capability by 50 p.c from 60 million commonplace cubic toes per day (MMscfd) to 90 MMscfd and introduce an acid gasoline injection (AGI) nicely, based on a information launch from the Tailwater Capital portfolio firm.
Monetary phrases of the agreements weren’t disclosed.
- Advertisement -
The improved system, which is anticipated to be totally operational by the fourth quarter, targets to supply expanded processing capability and shall be geared up to deal with a broad vary of gasoline compositions, together with hydrogen sulfide, carbon dioxide, and nitrogen to make sure constant downstream market supply, the corporate mentioned.
The growth builds on the profitable first section of the event, which grew to become operational within the second quarter, based on the discharge.
Producers Midstream mentioned it continues to evaluate additional growth initiatives that may be quickly deployed with a “phased improvement technique [that] allows fast, capital-efficient scalability by constructing upon its current asset base”.
Producers Midstream mentioned it has secured long-term acreage dedications and quantity commitments from a number of undisclosed “premier” Permian operators, with extra industrial discussions underway to assist additional progress. Together with the shopper commitments, the corporate mentioned it has secured long-term residue and pure gasoline liquids (NGL) takeaway to completely assist discipline improvement.
“Strategically increasing inside our core footprint enhances operational effectivity, maximizes asset utilization, and gives speedy worth to our clients and stakeholders,” Producers Midstream President and CEO Matt Flory mentioned. “Situated in a high-growth hall of the Delaware Basin, this growth gives essential infrastructure to assist our companions’ improvement aims”.
“This growth is one other testomony to Tailwater and Producers Midstream’s focus of rising with our clients,” Tailwater Capital Companion Stephen Lipscomb mentioned. “Producers Midstream is delivering essential infrastructure options to fulfill the wants of operators in probably the most dynamic areas of the Delaware Basin”.
Producers Midstream describes itself as working a diversified midstream platform with important scale throughout the Japanese Permian Shelf, Texas Panhandle, and Western Oklahoma with 800 MMcfpd of gathering and processing capability. Underpinned by over 745,000 devoted acres, the corporate processes over 300,000 MMcfpd of wellhead volumes on over 3,400 miles of pipelines whereas treating for nitrogen, hydrogen sulfide, carbon dioxide and different non-conforming contaminants.
PM mentioned it operates 150 miles of NGL transportation traces along with two public midstreams to maneuver merchandise from the Anadarko Basin and Barnett Shale to downstream markets on the Texas Gulf Coast. Its system has 17 interconnects with downstream residue pipelines with final deliveries servicing the Mid-Continent, North Texas, and the Midwest.
Dallas-based Tailwater Capital describes itself as an vitality and environmental infrastructure personal fairness agency with a “well-established observe report of working constructively with confirmed administration groups to ship value-added options”. The agency mentioned it has raised greater than $5 billion in dedicated capital since inception and the group has executed greater than 235 transactions representing over $26 billion in worth.
To contact the creator, electronic mail rocky.teodoro@rigzone.com
Generated by readers, the feedback included herein don’t replicate the views and opinions of Rigzone. All feedback are topic to editorial evaluation. Off-topic, inappropriate or insulting feedback shall be eliminated.
