NGL Energy Partners LP recently signed separate, long-term produced water transportation and disposal agreements with two large, investment-grade producer customers in the Delaware Basin, the company said in a Feb. 18 news release.
The agreements include acreage dedications totaling about 20,000 acres, from which initial produced water volumes are expected to be received beginning in July. The names of the producers weren’t disclosed.
NGL Energy Partners said it plans to use its existing infrastructure and significant disposal capacity to service these contracts. The company owns and operates the largest integrated network of large diameter produced water pipelines, recycling facilities and disposal wells in the northern Delaware Basin, according to the company release.
Based in Tulsa, Okla., NGL’s water solutions segment operates in the Permian’s Delaware and Midland sub-basins and the Eagle Ford Shale and Denver-Julesburg Basin. The group handles approximately 1.7 million barrels of produced water per day across its areas of operation.