Midstream solutions provider Vaquero Midstream LLC will start construction on its gas gathering and processing project in the Southern Delaware Basin in June.
The company has selected a site in Pecos County, Texas, close to the Waha natural gas hub and the Lone Star natural gas liquids (NGL) pipeline.
The new facility will include a UOP Russell 200 million-cubic-feet-per-day cryogenic unit, as well as an extensive system of gathering pipelines. More than 100 miles of high-pressure 8-inch to 30-inch pipeline will connect the processing plant to central delivery points on producers' acreage blocks.
Announcing its plans on Monday, Vaquero said that the newly-built facility, specifically designed for the gas in the Delaware Basin, will provide optimum recoveries and efficiency in any price environment. The Waha Hub should provide the best flow assurance and pricing for the residue natural gas, while the Lone Star NGL Pipeline connects the liquids to the Mont Belvieu NGL market, the company explained.
"We are strong believers in the Southern Delaware Basin and we are excited about transforming the area's infrastructure capabilities to a new level," said Gary Conway, president and CEO of Vaquero Midstream. "We are committed to partnering with the producers in the Southern Delaware Basin by building a world class asset designed as a solution for the producers' needs."
Construction of the plant and gathering system is expected to take about 12 months, with the complex scheduled to start operating by the second quarter of 2016.