If Permian gas production is growing, that mean’s the region’s central gas pipeline hub—Waha—will only grow in importance. So it’s logical for a midstream operator that wants to establish a major presence in the Permian to be there.
It’s the same concept that brought dozens of energy companies to the Houston Ship Channel or the nearby Mont Belvieu NGL hub.
Yorktown Energy Partners LLC-backed Vaquero Midstream LLC has quietly built a 400 million cubic feet per day (MMcf/d) processing facility and over 100 miles of a 24- to 30-inch rich gas gathering system across the southern Delaware Basin. Its main plant is very close to the Waha Hub—less than five miles away.