Brazos Midstream buys Delaware basin gas gathering system
Subsidiaries of Brazos Midstream Holdings LLC, Fort Worth, have completed their acquisition of a natural gas gathering system in the southern Delaware basin from Callon Petroleum Co., Natchez, Miss.
The gathering system will connect to Brazos’ existing system that includes the previously announced 200-MMcfd Comanche II gas processing plant, which will be completed in January 2018 and bring Brazos’ total operated processing capacity to 260 MMcfd. The company earlier this year started operations from its 60-MMcfd Comanche I plant.
Brazos also is advancing plans to build a 200-MMcfd Comanche III plant, for which the company has secured a site and will begin construction in early 2018.
As part of the deal, Brazos signed a long-term, fee-based agreement with Callon for gas gathering and processing services for acreage under development in the southern Delaware’s Ward and Pecos counties in Texas. Including the Callon dedication, Brazos’ midstream infrastructure is anchored by long-term acreage dedications with Permian operators covering 240,000 acres.
In addition to its gas processing complex, Brazos operates 275 miles of gas and oil pipeline and 50,000 bbl of crude storage in the Delaware basin. The company is supported by equity commitments from affiliates of Boston-based energy investor Old Ironsides Energy LLC and a revolving credit facility with multiple banks.
