EnLink Midstream Forms JV with NGP to Expand in Delaware Basin
General partner EnLink Midstream and NGP Natural Resources XI formed a joint venture to operate and expand natural gas, natural gas liquids and crude oil midstream assets in the liquids-rich Delaware Basin. The new Lobo II expansion will include a cryogenic natural gas processing facility with capacity up to 120 MMcf/d and associated natural gas and liquids gathering pipeline infrastructure in Loving County, TX, and Eddy and Lea counties, New Mexico.
“The experience and expertise of EnLink and NGP are highly complementary, reinforcing our commitment to maintaining our strong balance sheet, while providing financial flexibility to respond quickly to producer needs,” said Barry E. Davis, EnLink chairman, president, and CEO.
The partnership will serve as managing member and handle day-to-day construction and operation of the assets, which are supported by long-term, fee-based commitments from major producers.
The expansion builds off the existing Lobo System, a gathering and processing system acquired from Matador Resources in October 2015. Upon completion of Lobo II, the facility will have a processing capacity of 155 MMcf/d in the Delaware Basin, which continues to be an active growth region for oil and gas production.
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