Lucid Energy Grows Natural Gas Assets in Delaware Basin

---

Researched by Industrial Info Resources (Sugar Land, Texas)--Midstream provider Lucid Energy Group (Dallas, Texas) says it has made "significant expansions" to its gathering and processing capacity in southeastern New Mexico's Delaware Basin. This growth builds on Lucid's acquisition of Agave Energy Company (Artesia, New Mexico) earlier this year, which brought it numerous assets in the U.S Southwest and Rocky Mountains regions. Industrial Info is tracking several growth and maintenance projects involving both companies.

The first phase of Lucid's expansion focuses on the South Carlsbad Gathering and Processing System in Lea and Eddy counties, New Mexico, which it acquired from Agave, according to a press release from Lucid. The company already has expanded processing capacity at the Red Hills Natural Gas Processing complex in Jal, New Mexico, from 60 million to 110 million cubic feet per day, a 40% increase.

Lucid recently began construction on the $250 million second-phase expansion of the Red Hills facility, which involves building a second train with a capacity of 200 million standard cubic feet per day of natural gas, and a production capacity for 25,000 barrels per day (BBL/d) of natural gas liquids (NGL). These additions, which are expected to be completed toward the beginning of second-quarter 2017, will bring Red Hills' total capacity for natural gas to 330 million standard cubic feet per day and the NGL production capacity to 50,000 BBL/d. For more information, see Industrial Info's project report.

Lucid also is at work on a $4.5 million power substation at the Red Hills complex. The 115-kilovolt facility is in its engineering phase and is expected to begin construction toward the end of the year; it is set to be completed alongside the second-phase expansion. For more information, see Industrial Info's project report.

Industrial Info also is tracking $6.5 million in maintenance turnarounds involving Lucid and Agave through 2019.

In late August, Lucid announced it had acquired Agave, which owns and operates natural gas gathering and processing assets in the Delaware Basin and eastern Wyoming's Powder River Basin. In addition to the Red Hills facility, Lucid obtained the Palo Duro Cryogenic Natural Gas Processing Plant in Loving, New Mexico, and the Dagger Draw Cryogenic Natural Gas Processing Plant in Artesia, New Mexico. The company is weighing two $10 million condensate stabilizer additions, one proposed for each facility, each with a capacity of 2,500 BBL/d of condensate. For more information, see Industrial Info's project reports for the Palo Duro and Dagger Draw proposals.

"Lucid worked very hard to build a strong reputation for reliable execution and speed in the Midland Basin [in Texas]," said Jay L. Langham, the executive vice president and chief operating officer of Lucid, in the press release. "In a short time, we've been able to establish the same culture of excellence in the Delaware Basin through the rapid execution of Lucid's ambitious growth plan. Our team remains focused on project execution to improve and expand our asset base, allowing Lucid to continue to bring integrated midstream services and meet the growing demand of the producers in the Delaware Basin."

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/.