LM Energy begins construction on Delaware basin natural gas gathering system expansion
LM Energy Holdings LLC, Dallas, is expanding its northern Delaware basin natural gas gathering system and has begun construction on the project set to increase system capacity to about 500,000 MMcfd.
The company recently entered into definitive long-term agreements with multiple top-tier producer customers to support the expansion of its gas gathering systems in Eddy and Lea counties, New Mexico, the company said in a release May 13.
The company has begun constructing multiple new compressor stations and about 70 miles of new, large-diameter, low-and-high-pressure gas pipelines, including a 27-mile, 20-in. high-pressure pipeline that will connect the company’s existing Touchdown gas gathering system to multiple gas processing plants near Loving, New Mexico.
The new high-pressure pipeline will provide over 300 MMcfd of delivery capacity out of the North Carlsbad area. Upon completion of the planned expansion projects, which will enter service throughout second-half 2024 and into first-half 2025, LM’s systems will consist of 10 compressor stations and 150 miles of gas gathering pipelines.
Last year, the company agreed to sell certain subsidiaries and assets related to its Touchdown crude oil gathering system in Eddy and Lea counties as part of a plan to focus on its natural gas gathering systems in the northern Delaware basin (OGJ Online, Sept. 26, 2023).
