Brazos Midstream has executed gathering and processing agreements with Shell Exploration & Production to construct a new natural gas gathering system located in the core of the Delaware Basin.
Brazos’ new midstream infrastructure is anchored by fifteen year, fee-based acreage dedications totaling 55,000 acres in Loving, Ward, and Winkler counties.
Brazos will construct 16 miles of high-pressure pipeline that will extend from the Company’s existing gathering and processing systems and can be expanded further to support multi-well pad development by current producer customers, as well as other producers in the area.
Brazos also announced it recently commissioned the Comanche III plant, a 200 million-cubic-feet-per-day (MMcf/d) cryogenic natural gas processing plant. Comanche III, which began processing volumes in the first quarter of 2019, is the third plant in Brazos’ natural gas processing complex, located in Reeves County, Texas, and brings Brazos’ total operated processing capacity in the region to 460 MMcf/d.
Brazos anticipates further expansion of its processing complex with Comanche IV, a new 200 MMcf/d plant, and expects construction to begin as early as 2020.
“We are very pleased to announce the expansion of our relationship with Shell Exploration and Production, one of world’s premier oil and gas companies, as well as the completion of our Comanche III processing plant,” said Brad Iles, Brazos Chief Executive Officer. “These projects are a testament to the strength of our operating team and demonstrate our commitment to aggressively expand our asset base in support of our upstream customers. We remain committed to offering comprehensive, best-in-class midstream services and will continue to leverage our extensive experience in the region and our strong customer relationships as we grow in one of the most economic oil and gas producing regions in the country.”
Source: Company Press Release.