Vaquero Midstream invests in Southern Delaware Basin

Vaquero Midstream LLC is continuing to move forward on its gas gathering and processing project in the Southern Delaware Basin. The company has selected a site in Pecos County in close proximity to the Waha Hub and the Lone Star NGL pipeline and plans to begin construction in June.

The company’s infrastructure solution will be anchored by a UOP Russell 200 million-cubic-feet-per-day cryogenic unit. This newly built facility, specifically designed for the gas in the Delaware Basin, will provide optimum recoveries and efficiency in any price environment, maximizing the producers’ netback. The Waha Hub should provide the best flow assurance and pricing for the residue natural gas, and the Lone Star NGL Pipeline connects the liquids to the Mont Belvieu NGL market.

Additionally, Vaquero anticipates building a gathering footprint in the area, with more than 100 miles of high-pressure 8-inch to 30-inch pipeline, connected to Central Delivery Points on producers’ acreage blocks. The company plans to complete construction of the plant and gathering system over the next 12 months, and have the complex in operation by the second quarter of 2016.

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