Vaquero Midstream has announced a significant expansion of its natural gas infrastructure in the Southern Delaware Basin, aiming to double its gas gathering and boost processing capacity with two major projects.
The company will construct a new 70-mile, 24-inch high-pressure pipeline loop and a 200 million cubic feet per day (MMcf/d) cryogenic processing plant near the Waha Hub in Pecos County, Texas.
The new pipeline will originate at Vaquero’s processing complex near Waha and connect to its existing high-pressure system in Loving County.
This extension is expected to double the company’s current gathering capacity from 400 MMcf/d to approximately 800 MMcf/d, while providing a “significant” hydraulic benefit for gas collection from the northern end of its system as volumes in the area increase over the next few years.
The pipeline will expand Vaquero’s footprint through Ward, Winkler, and Loving Counties, with an anticipated in-service date by year-end 2025.
The cryogenic processing plant, scheduled to be operational by March 2026, will increase Vaquero’s total processing capacity in the Delaware Basin to 600 MMcf/d.
The plant’s efficiency will be enhanced by existing power and downstream infrastructure, including residue gas and natural gas liquids (NGL) systems.
Both projects will be financed through a portion of Vaquero’s recently secured US$400 million credit facility, led by BOK Financial.
Vaquero Midstream CEO Harrison Holmes stated: “Vaquero is dedicated to maintaining its position as one of the most reliable midstream operators in the Delaware Basin.
“This expansion of our gathering system will be key in providing direct access on the Vaquero’s system from northern Reeves and Loving Counties, Texas, to our processing complex near Waha.
“Our continued goal is to offer producers a unified gathering platform, supported by downstream market connectivity and reliable power infrastructure.”