New oil pipeline under construction in New Mexico’s Permian Basin


A new oil gathering pipeline system is under construction in New Mexico’s Permian Basin.  The announcement was made this week by LM Energy, formerly known as Longhorn Midstream based in Dallas.

As the Carlsbad Current Argus reported, the firm indicated the work will be in the Northern Delaware Basin to serve customers in Eddy County. It’s a region where Oklahoma City’s Devon Energy is active in exploration

Phase 2 of the project was also planned to extend the Touchdown system to include natural gas, adding more than 100 miles of low- and high-pressure pipelines among the two projects.

That phase was expected to begin operations in early 2020, the release read.

“With the increase in drilling activity and production growth in our focus area, we are well positioned to serve current and future customers,” said Elliot Gerson, managing partner of LM Energy.

“We are constructing our systems with new large diameter pipelines purpose-built for modern well performance. The high-rate-of return drilling, with oil-weighted economics and associated gas, is the ideal environment for a crude oil and natural gas midstream provider.”

“We are excited about the rapid growth LM Energy has experienced in the Permian Basin, and we remain committed to providing a broader suite of midstream infrastructure solutions to our upstream customers and downstream markets,” he said.

Meanwhile, a joint venture between an energy investment firm and an oil and gas operator was planned to expand acquisitions across the booming Permian Basin region.

Midland-based Henry Resources, which has operated in the Delaware and Midland basins for 50 years partnered with Pickering Energy Partners to expand its holdings in the booming region, read a news release.

The two companies planned to invest up to $500 million in producing assets in the Permian operated by Henry.