Dallas-based San Mateo Midstream, joint venture of Matador Resources and Five Point Infrastructure, this week announced agreements for two of its subsidiaries with “a large producer” in northern Delaware Basin. San Mateo will provide long-term, fee-based natural gas gathering, processing, treating and related midstream services to support the producer’s development.
San Mateo will gather and treat natural gas from newly dedicated acreage in Eddy and Lea counties, N.M., and process this gas at its Marlan complex in Eddy County. And San Mateo’s agreement for the Black River natural gas processing plant in Eddy County was extended. The volume gathered and processed under these agreements is expected to provide San Mateo with substantial long-term volume growth and increase use of its integrated midstream infrastructure.
San Mateo said it expects to use existing infrastructure and construct a new natural gas processing train (300 million cfd) at Marlan, 20 miles of new pipeline to connect new dedicated acreage, and a field treating facility for carbon dioxide removal.
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