Dallas-based Lucid Energy Group has announced the commission of its Red Hills V cryogenic processing plant in the Delaware Basin.
Since 2017, Lucid has commissioned five major natural gas processing plants across its footprint, representing the largest organic growth of any private midstream gas processor in the Permian Basin, according to a company release on March 23.
“Now more than ever, producers require reliable and high-quality midstream service providers,” said Lucid CEO Mike Latchem in a statement. “We are thrilled to commission Red Hills V and will continue to provide superior service to our customers as they develop the prolific northern Delaware Basin.”
The Red Hills V plant has the capacity to process 230 MMcf/d and brings the total capacity of Lucid’s natural gas processing franchise in the northern Delaware Basin to 1.2 Bcf/d. The company’s assets service Eddy and Lea counties in New Mexico, which Lucid said currently contain the most active drilling rigs in the country.
Lucid Energy Group is the largest privately held natural gas processor in the Permian Basin, providing the full range of gas midstream services to more than 50 customers in New Mexico and West Texas. The company is supported by growth capital commitments from a joint venture formed by Riverstone Holdings LLC and the asset management division of The Goldman Sachs Group Inc.
Complementing its natural gas processing franchise, Lucid also operates more than 2,000 miles of high- and low-pressure pipeline infrastructure. In its release, Lucid said this streamlined and efficient infrastructure network feeds its processing and treating complexes, which are capable of producing nearly 150,000 bbl/d of NGL.
Brent and WTI crude are tracking well so far. However, in its latest oil price forecast, Stratas Advisors says U.S. production will be a key variable going forward that will affect the future supply/demand dynamics and oil prices.
Saudi Arabia delivered the biggest increase in July of 460,000 bbl/d of oil, as it further unwound its voluntary cut and raised output as part of the July 1 OPEC+ boost.
The new pipeline in the south will start in Tuxpan in the Mexican state of Veracruz and run by sea to link with the Mayakan pipeline in the states of Campeche and Tabasco.