Midstream Announces Major Expansion In Delaware Basin

January 2012, Vol. 239 No. 1

Houston-based Nuevo Midstream, LLC plans to significantly increase processing and treating capacity at its Ramsey plant site in the Delaware Basin near Orla, TX. Nuevo has bought a cryogenic processing plant with capacity of 100 MMcf/d and a second amine treating plant with a capacity of 475 gallons per minute (gpm).

Both will be installed at the Ramsey site and are expected to be operational in the second quarter.

Nuevo will also extend its Ramsey Gathering System with additional large-diameter, natural gas gathering lines and an interconnect to the El Paso natural gas pipeline. The Ramsey Gathering System crosses through Eddy County in southeast New Mexico and Culberson, Loving and Reeves counties in West Texas and serves 38 natural gas producers pursuing the liquids-rich Bone Springs, Wolfcamp and Avalon Shale plays.

This is Nuevo Midstream’s second major expansion in the Delaware Basin since the company launched in April. The Phase II expansion is supported by additional customer dedications of acreage and production volume in the Avalon Shale trend. When the expansion is complete, Nuevo Midstream will have 110 MMcf/d of processing capacity and 625 gpm of treating capacity at the Ramsey plant along with more than 180 miles of high- and low-pressure pipeline and residue connections to interstate and intrastate markets. Drilling projections from numerous existing and prospective customers are expected to support further system extensions and capacity upgrades.

Nuevo completed its Phase I expansion which included recommissioning of a 10 MMcf/d refrigerated JT processing plant and fractionator and installation of a 150-gpm amine treating facility at the Ramsey plant site as well as 13 miles of eight-inch pipeline to the Ramsey Gathering System with an interconnect to the Enterprise Products pipeline nine miles south of the Ramsey plant.

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