Santa Fe Midstream LLC and Vermilion Cliffs Partners LLC will develop midstream infrastructure for oil, natural gas and water in the Delaware Basin, a Jan. 23 press release said.
The infrastructure will be built in Reeves and Culberson counties in West Texas.
Vermilion will contribute a 20-inch natural gas pipeline and associated facilities in Culberson County and will dedicate acreage.
Santa Fe Midstream will supply the additional capital required to construct gathering pipelines as well as a new 200 million cubic feet per day cryogenic gas processing plant in Culberson County. Santa Fe will be the operator of the midstream assets.
Natural gas residue will be delivered to downstream interstate and intrastate pipelines serving Mexican, Western U.S. and Texas markets, and NGL will be delivered to pipelines for transportation and fractionation at Mont Belvieu, Texas.
Santa Fe Midstream LLC is based in Plano, Texas.
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