NGL Energy Partners LP on Aug. 31 said that the partnership signed a long-term extension and expansion of an acreage dedication with an existing customer.
The extension of this agreement is with a leading, investment grade independent producer customer operating in Lea and Eddy Counties, New Mexico within the Delaware Basin. The new agreement increases its acreage dedication by 22,000 acres, increasing the new total dedicated acres with the customer to approximately 122,000 acres, and extends the term through 2027.
“The renewal and extension of this agreement is a huge accolade to the NGL team, as it again demonstrates our ability to continually execute on produced water transportation and disposal needs of our customers in an unrivaled safe, efficient and reliable manner,” Christian Holcomb, COO of Water Solutions, said.
NGL owns and operates the largest integrated network of large diameter produced water pipelines, recycling facilities and disposal wells in the Delaware Basin. The partnership’s water solutions segment operates in a number of the most prolific crude oil and natural gas producing areas including the Delaware Basin in New Mexico and Texas, the Midland Basin in Texas, the DJ Basin in Colorado and the Eagle Ford Basin in Texas.
Japanese trading house Sumitomo bought a 30% stake in the project in 2010 from Rex Energy Corp., which went bankrupt in 2018. The project is now 70% owned and operated by PennEnergy Resources.
Amended agreements allow the company to move reduced volumes of Permian crude on existing pipelines.
Better wells, higher efficiencies and improved logistics are becoming the norm as contractors and operators alike ramp up the development of solutions.