NGL Energy Partners LP in Tulsa announced the signing of a new long-term produced water transportation and disposal agreement in the Delaware Basin of southeast New Mexico.
The agreement is with a leading independent producer operating in Eddy and Lea Counties in the basin, but NGL did not identify the producer.
This agreement includes a 10 year acreage dedication totaling approximately 10,000 acres and an additional area of mutual interest for future growth. The producer currently has a 53,000 acre position within the area of mutual interest which includes all of Eddy and Lea counties in New Mexico.
As it has with other recent dedications, the NGL Energy plans to use its existing infrastructure and significant disposal capacity to service this new contract.
“We are pleased to announce this agreement that allows us to continue to grow with this customer as it develops its resource and increase our dedicated acreage portfolio in the Northern Delaware Basin ,” said Doug White , EVP Water Solutions.
NGL owns and operates the largest integrated network of large diameter produced water pipelines, recycling facilities and disposal wells in the Northern Delaware Basin. The company’s Water Solutions segment operates in a number of the most prolific crude oil and natural gas producing areas including the Delaware Basin in New Mexico and Texas , the Midland Basin in Texas , the DJ Basin in Colorado and the Eagleford Basin in Texas .
Source: NGL Energy