Delaware Basin Development Fuels Natural Gas Processing Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--Last week's announced startup of Lucid Energy Group's (Dallas, Texas) Red Hills II cryogenic natural gas processing plant in Lea County, New Mexico, marks the continued development of midstream processing capacity in the Delaware Basin. Industrial Info is tracking nearly $2.5 billion in natural gas processing project activity in the basin, which straddles West Texas and southeast New Mexico.

With the latest expansion, the Red Hills Natural Gas Processing Complex has the capacity to process 310 million cubic feet per day (MMcf/d), Lucid said in a press statement, which brings the total processing capacity of the company's South Carlsbad Gas Gathering and Processing System in New Mexico's Lea and Eddy counties to 345 MMcf/d. The South Carlsbad System serves producers developing the Wolfcamp, Bone Springs and Avalon formations of the northern Delaware Basin, according to Lucid.

Earlier this month, Lucid announced that Magnetar Capital (Evanston, Illinois) would invest up to $250 million in the company to continue its infrastructure buildout in the Delaware Basin. For related information, see December 16, 2016, article - Lucid Energy Grows Natural Gas Assets in Delaware Basin.

Industrial Info is tracking nine active capital natural gas processing projects worth in $956 million in Lea and Eddy counties. This includes Lucid's planned $200 million Phase III Red Hills expansion, which would add 200 MMcf/d capacity to the complex. Lucid will continue with a market analysis of the expansion through first-quarter 2018. If the analysis proves favorable, construction is expected kick off in second-quarter 2018, with completion in early 2019. For more information, see Industrial Info's project report.

In Loving, New Mexico, Lucid is building the $150 million Roadrunner Cryogenic Natural Gas Processing Plant, which is set for completion in early 2018. Honeywell UOP Russell (Tulsa, Oklahoma) is the project's technology provider for the 200 MMcf/d facility. Saulsbury Industries (Odessa, Texas) is providing engineering, procurement and construction (EPC) services.

"The Roadrunner plant will complete the next step in Lucid's growth plan for the South Carlsbad System," Lucid Executive Vice President and Chief Commercial Officer Scott Brown said in a press statement earlier this year. "Connecting this state-of-the-art cryogenic processing plant complex to the existing pipeline infrastructure serving the Red Hills Plant Complex creates capacity and reliability that our customers need in both Eddy and Lea counties." For more information, see Industrial Info's project report.

In far West Texas, Industrial Info is tracking 10 active natural gas processing projects worth $1.52 billion in the counties that include the Delaware Basin.

Earlier this month, Brazos Midstream Holdings, LLC (Fort Worth, Texas) announced the completion of the 60 MMcf/d Comanche I plant in Pecos, Texas. Brazos said it has begun construction of a second gas processing plant, Comanche II, which will add 200,000 MMcf/d of incremental processing capacity. With a total investment value of $150 million, Comanche II is expected to be operational during the first quarter of 2018 and will increase Brazos' total operated processing capacity in the Delaware Basin to 260,000 MMcf/d. For related information, see Industrial Info's project report.

Other Delaware Basin developments in West Texas include Enterprise Products Partners' (NYSE:EPD) (Houston, Texas) $200 million Delaware Basin Cryogenic Natural Gas Processing Plant in Coynosa. The plant will process up to 300 MMcf/d of natural gas and 40,000 barrels per day of natural gas liquids. Optimized Process Designs, LLC, part of Koch Industries Incorporated (Wichita, Kansas), is providing EPC services on the project, which is expected to be completed in May, 2018. For more information, see Industrial Info's project report.

In Van Horn, Texas, Santa Fe Midstream, with Vermillion Cliffs Partners, is preparing to begin construction of the $200 million Culberson Cryogenic Natural Gas Processing Plant. Construction of the 200 MMcf/d plant is expected to begin in July, with completion in early 2018. For more information, see Industrial Info's project report.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.