Dallas-based Producers Midstream II, portfolio company of Tailwater Capital, said last week it is constructing a new gathering, treating and processing system in Lea County, N.M., in the core of the Delaware Basin. The initial build-out will use existing plant, treating and compression assets owned by the company. The new system is expected to begin operations in 2025Q2.
Phase I includes relocating an existing cryogenic processing plant (60 million standard cfd) owned and operated by Producers Midstream, constructing an acid gas injection well, and installing compression equipment of more than 40,000 horsepower.
Matt Flory, president and CEO, said Oct. 3, “By strategically positioning assets and expanding capacity, we’re equipping operators with the infrastructure they need to support ongoing and future development in this rapidly growing area… This phased development approach allows us to strategically repurpose existing, idle assets.”
Producers Midstream’s announcement said the company has “entered into definitive agreements with multiple parties, securing both acreage dedications and volume commitments to support the development.”