Producers Midstream, LP (PMLP) today announced it plans to install a new natural gas gathering system and up to 260 million cubic feet per day of cryogenic processing capacity in the Western Delaware Basin through the formation of Culberson Midstream LLC. The system is anchored by more than 40,000 net dedicated acres and a 1,000 square mile area of mutual interest from Charger Shale Oil Company. Culberson Midstream, operated by PMLP, will provide Delaware Basin producers with competitive midstream solutions for gas, oil and water.
PMLP will construct and operate the midstream system consisting of more than 70 miles of pipeline, up to 40,000 horsepower of compression, and a new cryogenic natural gas processing complex with up to 260 million cubic feet per day of capacity to serve producers developing the prolific Wolfcamp, Bone Springs, and Avalon formations in the Delaware Basin.
This partnership marks a significant step forward with our growth,” Jim Bryant, CEO of Producers Midstream, said. “With many years of midstream experience, PMLP was formed to provide our producers/customers a competitive edge by constructing and operating midstream infrastructure efficiently and reliably to ensure the best netbacks for our customers. This greenfield development will allow Charger and other operators in the area to take advantage of a best-in-class gathering and processing system designed specifically to meet the needs of the rapidly expanding Delaware Basin.”
PMLP expects the system to be operational in the first quarter of 2018. The system will be strategically located in Culberson County, Texas to provide customers with optimal flow assurance and flexibility, and access to multiple downstream markets for both residue gas and NGL sales. The system will also have capacity to expand as development continues.