Vaquero Midstream has announced plans to expand its natural gas infrastructure in the Southern Delaware Basin.
It plans to construct a new 70-mile, 24in high-pressure pipeline loop and a cryogenic processing plant with a capacity of 200 million cubic feet per day (/d) to enhance its gathering capabilities from the state line area to its expanded processing complex near the Waha Hub in Pecos County, Texas.
The pipeline will begin at Vaquero’s processing complex near Waha and tie into the company’s existing high-pressure system in Loving County, Texas.
Vaquero Midstream stated that this extension is expected to double the current gathering capacity from /d to approximately /d and offer a “significant” hydraulic benefit for gas collection from the northern end of its system as volumes increase in the area over the next few years.
The pipeline will extend Vaquero’s gathering footprint through parts of Ward, Winkler and Loving Counties, with an anticipated in-service date by year-end 2025.
The new cryogenic processing plant will increase Vaquero’s total processing capacity in the Delaware Basin to /d.
This plant’s operational efficiency will be enhanced by existing power and downstream infrastructure including residue gas and natural gas liquids (NGL) systems, stated Vaquero Midstream, which is a natural gas gathering and processing midstream company operating in the Delaware Basin.
The expected in-service date for the processing plant is March 2026.
Both projects will be financed through a portion of Vaquero Midstream’s recently secured $400m credit facility, led by BOK Financial.
Vaquero Midstream chief executive officer Harrison Holmes said: “Vaquero is dedicated to maintaining its position as one of the most reliable midstream operators in the Delaware Basin.
“This expansion of our gathering system will be key in providing direct access on the Vaquero’s system from northern Reeves and Loving Counties, Texas, to our processing complex near Waha. Our continued goal is to offer producers a unified gathering platform, supported by downstream market connectivity and reliable power infrastructure.”
