The water will support the oil and gas industry in Texas and New Mexico with potential for additional industrial users and other applications
Palisade Pipeline closes development financing with Macquarie Capital for strategic water project in the Permian Basin. Photo: courtesy of rawpixel from Pixabay.
Palisade Pipeline LLC (“Palisade”), a developer of water infrastructure projects, today announced that it has completed a transaction with Macquarie Capital, the corporate advisory, capital markets and principal investing arm of Macquarie Group, in which Macquarie Capital is providing development capital for construction of a high capacity water pipeline to deliver non-potable, sustainable reclaimed water from the City of Lubbock, Texas to the Permian Basin. Macquarie Capital will also act as the sole financial advisor to Palisade in the financing of the pipeline.
The water will support the oil and gas industry in Texas and New Mexico with potential for additional industrial users and other applications.
In June of 2019, the Lubbock City Council approved a letter of intent to sell to Palisade up to 6 million gallons per day of non-potable reclaimed water.
Palisade’s President, Phillip Laughlin said, “We are excited about the opportunity to preserve groundwater in the Permian Basin while providing a source of revenue to the City of Lubbock. We appreciate Macquarie Capital’s support of this groundbreaking project.”
“We are pleased to partner with Palisade in developing this innovative project,” said Nicholas Gole, Head of Americas Energy Principal Investments for Macquarie Capital. “This pipeline will provide a sustainable source of quality water to an area with increasing demand and limited water supply.”
Source: Company Press Release