H2O Midstream has acquired the produced water infrastructure from Encana Oil & Gas (USA) Inc. concurrent with the execution of an acreage dedication based midstream water services agreement. Under the agreement, H2O Midstream will gather, dispose and deliver for re-use produced water for a substantial portion of Encana’s acreage position in Howard County, Texas. In connection with the acquisition, H2O Midstream will assume ownership and operation of Encana’s existing produced water gathering system consisting of over 100 miles of interconnected pipeline and five salt water disposal wells totaling 80,000 barrels per day of permitted disposal capacity.
H2O Midstream plans to expand the existing system significantly through the addition of new produced water pipelines, additional disposal wells, and the construction of a state-of-the-art water storage and re-use hub. By 2018, H2O Midstream expects to have more than 200 miles of pipeline for gathering, 140,000 barrels per day of disposal capacity, and over 2 million barrels of storage to serve Encana as well as other nearby producers.