NGL Energy Partners extends produced water pipeline system to New Mexico
NGL Energy Partners LP (NYSE: NGL) announced the expansion of its Lea County Express Pipeline System through a 60-mile extension into Eddy County, New Mexico. The LEX II Extension includes large-diameter pipeline infrastructure, new disposal wells, and injection facilities.
The expansion increases the pipeline system's total length to 81 miles with capacity to transport approximately 560,000 barrels per day of produced water from Eddy and Lea Counties in New Mexico to Andrews County, Texas. The project adds 165,000 barrels per day of capacity to the existing system, with potential for further expansion to 650,000 barrels per day.
The extension incorporates 24-inch and 30-inch diameter produced water pipelines and expands the committed acreage by four townships in Eddy County. The project is supported by a long-term volume commitment contract that includes increased volume commitments from a producer.
"NGL remains focused on our commitment to deliver scalable and reliable produced water management for our customers through our super-system pipeline platform and substantial pore space inventory on the Central Basin Platform," said Doug White, executive vice president of NGL Water Solutions.
NGL operates produced water management systems across multiple oil and gas producing regions, including the Delaware, Eagle Ford and DJ Basins. The company's Water Solutions segment generates approximately 85% of consolidated adjusted EBITDA excluding corporate overhead, according to the press release.
The partnership operates over 3.0 million barrels per day of produced water disposal capacity in the Delaware Basin through its integrated network of pipelines, disposal wells and water handling systems.
