Trace Midstream Partners II LLC has agreed to acquire the natural gas gathering and transportation assets in the Northern Delaware basin from LM Energy Delaware LLC.
The assets, in Eddy and Lea counties in New Mexico, consist of high- and low-pressure gas pipelines with associated compression, dehydration, condensate handling, and vapor recovery capabilities.
LM Energy is currently constructing multiple new compressor stations, new gathering pipelines, and a 20-in. OD high-pressure transportation pipeline that will connect the existing gas gathering system to a number of gas processing plants near Loving, NM. Upon completion of the projects, the system will consist of about 170 miles of pipeline and 12 compressor stations, with a total design capacity of 650 MMscfd. The system has over 80,000 dedicated acres and is supported by long-term, fixed-fee contracts from multiple producers.
Trace is a portfolio company of Quantum Capital Group. LM Energy is a portfolio company of Old Ironsides Energy LLC.
