Plano, Texas-based Santa Fe Midstream LLC plans to form a joint venture with Vermilion Cliffs Partners LLC to develop crude oil, natural gas and water midstream infrastructure in the Delaware Basin in Reeves and Culberson counties in West Texas. Vermilion will contribute a 20” natural gas pipeline and associated facilities in Culberson County and dedicate acreage to the joint venture. Santa Fe will supply the additional capital required to construct gathering pipelines as well as a new 200 MMcfd cryogenic gas processing plant in Culberson County. Santa Fe will be the operator of the midstream assets.
The Santa Fe - Vermilion joint venture will offer natural gas gathering and processing, crude oil gathering and produced water gathering to disposal wells for producers in the Delaware Basin. Natural gas residue will be delivered to downstream interstate and intrastate pipelines serving Mexican, Western US and Texas markets and NGL’s will be delivered to pipelines for transportation and fractionation at Mont Belvieu, Texas.
Santa Fe Midstream is backed by Energy Spectrum Capital’s fund Energy Spectrum Partners VII LP.