Lucid Energy Group has commissioned the Red Hills II cryogenic processing plant, located in Lea County in the US state of New Mexico.
The new processing complex is claimed to have the capacity to process about 310 million cubic feet per day (MMcf/d). This takes the total processing capacity of Lucid’s South Carlsbad Gas Gathering and Processing system in Lea and Eddy Counties to about 345MMcf/d.
Lucid Energy says that the new facility can help in tripling its processing capacity since last September, when it acquired Agave Energy. The South Carlsbad system offers producers developing the prolific Wolfcamp, Bone Springs and Avalon formation of the northern Delaware Basin.
The Texas-based midstream provider also stated that it is on schedule with the Roadrunner cryogenic processing plant. Roadrunner I is the first plant at Roadrunner complex in Eddy County, which has a 200 MMcf/d of production and will increase the South Carlsbad system’s capacity to 545 MMcf/d by next January.
Lucid executive vice president and chief operating officer Jay Langham said: “We are excited to announce we have successfully brought the Red Hills II cryogenic processing plant online ahead of schedule.
“As a result of the rapid execution of the Lucid team, we have provided immediate capacity and reliability for our Delaware Basin customers in Eddy and Lea counties. Consistent with our commitment to continuing to provide superior service to our customers, our team now shifts focus to processing expansions in Eddy County.”
Recently, Lucid has secured preferred equity commitment of up to $250m from Magnetar Capital. The company stated that the investment will aid in developing its infrastructure in the Permian Basin.
Lucid plans to use this investment to support the development of its natural gas gathering and processing system in Delaware Basin.