STW Resources Holding Corp. (OTCQB: STWS) will expand services and the scope of new construction in its wholly owned subsidiary, STW Pipeline Maintenance and Construction, in 2015. Additionally, STW Pipeline has signed an alliance contract with Regency Energy Partners for the year.
In 2015, the maintenance division of STW Pipeline plans to add an additional six to eight crews in the Permian Basin. The company comments that, while the recent decline in oil prices has caused upstream production in the oil and gas industry to slow down, demand for midstream maintenance has increased mainly because the aging pipeline infrastructure is being pushed to the limit. Also, pipeline replacements of old lines require attention to keep them in service so the gas can get to market.
STW Pipeline's new construction division plans to increase the size and scope of the business by bidding on larger new pipeline construction projects. STW Pipeline will also add more crews and equipment to increase the number of new pipeline projects that it can build simultaneously.
STW Pipeline says that new pipeline installation in 2015 is very aggressive because of the needed infrastructure that is not in place to move all of the new oil and gas from the wells that have been drilled in the Permian Basin these past few years. Capital has already been budgeted for these projects that will start immediately, which affords STW Pipeline the revenue base to add additional crews to the new pipeline construction division.