Dallas-based LM Energy Holdings recently started construction on an expansion of its natural gas gathering system that will increase capacity to 500 million cfd. The company said May 13 it has entered into long-term agreements with multiple producers to support expansion of its gas gathering system in Eddy and Lea counties in southeast New Mexico.
LM Energy started construction on multiple new compressor stations and about 70 miles of new pipelines, including 27 miles of pipeline to connect Touchdown gas gathering system to multiple gas processing plants near Loving, N.M. The new high-pressure pipeline will provide more than 300 million cfd of delivery capacity from the north Carlsbad area.
Last year the company agreed to sell certain subsidiaries and assets of the Touchdown crude oil gathering system in Eddy and Lea counties to focus on its natural gas gathering system in northern Delaware Basin.
Elliot Gerson, CEO, said, “Our system will provide our customers with much-needed flow assurance and unlock their plans to aggressively develop this extremely high-quality acreage.”