WPX and Howard Energy finish construction of joint venture in Delaware Basin

Tulsa’s WPX Energy and San Antonio-based Howard Energy Partners have completed construction on the majority of their joint venture to build an oil and gas gathering and processing facility in the Delaware Basin of West Texas.

Howard Energy is in charge of operations. The gathering infrastructure will support an area more than 600 square miles in Loving County, Texas and Lea and Eddy Counties in New Mexico.

Howard Energy already has six oil and gas development regions including the STACK in Oklahoma, the Eagle Ford in South Texas, the Texas Gulf Coast, the Marcellus in Pennsylvania and Mexico.

  • HEP recently commissioned the second 200 million cubic feet per day (MMcf/d) plant as part of its two-plant, 400 MMcf/d cryogenic processing complex in Reeves County. The first plant came online in September 2018. Referred to as the County Line Facility, the facility also includes 4,000 barrels per day (BPD) of condensate stabilization capacity and provides connections to WhiteWater Midstream and El Paso Natural Gas transmission pipelines; and EPIC and ONEOK West Texas NGL pipelines.
  • HEP completed more than 50 miles of crude oil gathering pipelines with 100,000 BPD of capacity, and an associated 50,000-barrel crude oil terminal in Reeves County.
  • HEP has entered into a new contractual commitment to support a significant Delaware Basin producer that will further expand HEP’s crude oil gathering to accommodate the dedication of more than 10,000 additional gross acres.
  • HEP continues to build out its natural gas infrastructure, recently completing a 23-mile, 24-inch trunkline connecting additional gas processing supplies in the area. Construction is ongoing of approximately 21 miles of 16-inch high pressure, rich gas gathering pipelines, expected to be complete this summer. Once fully built out, the system will have approximately 800 MMcf/d of throughput capacity. HEP has the capability to expand infrastructure as customers continue to move towards full-scale development.

“The completion of our previously announced projects in the Delaware Basin and our continued presence in the region is part of our broader company strategy to diversify both service offerings and geographic area,” said HEP Chairman and Chief Executive Officer Mike Howard. “We are in the core of the core of the Delaware Basin with multiple productive zones and it will continue to be a growth focus for HEP. Through our strategic relationships and great customer service we continue to attract third party business and expect volume growth to remain strong on our strategically-located processing and pipeline assets.”

 

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