NGL Energy Partners LP has signed a new long-term produced water transportation and disposal agreement with a supermajor producer, the company said July 8.
The new agreement is with a producer operating in Loving County within the core of the Delaware Basin and includes a 15-year acreage dedication. The partnership plans to use its existing infrastructure and significant disposal capacity to service this new contract, as it has with other recent dedications.
“We are extremely pleased to announce this new commitment with a current customer. NGL continues to deliver reliability and long-term value to our customers. In the current environment, the dedication demonstrates the confidence our customers have in NGL’s ability to deliver reliable midstream services,” said Doug White, NGL’s executive vice president of water solutions.
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 and Eagle Ford Basins in Texas, and the DJ Basin in Colorado.
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