Brazos Midstream Announces Significant Milestones in Buildout of New Midland Basin Gas Gathering and Processing System
15 Agosto 2024 - 6:30AM
Business Wire
- New-build G&P system will span the core of the Midland
Basin, including Ector, Howard, Midland, Martin, Glasscock, and
Reagan counties
- Projects include a new 200 MMcf/d cryogenic gas processing
facility with nitrogen rejection capabilities and approximately 175
miles of 16-inch through 24-inch high-pressure gas gathering
pipeline and other associated midstream infrastructure
- Construction of an additional 300 MMcf/d cryogenic gas
processing facility will increase Brazos’ total processing capacity
to 500 MMcf/d by year-end 2025
- New preferred equity investment led by EOC Partners and Elda
River Capital and increased revolving credit facility expands
financial capacity for accelerated growth plans
Brazos Midstream (“Brazos” or the “Company”) today announced the
completion of several significant milestone projects consisting of
major new-build pipelines and processing facilities located in the
core of the Midland Basin, one of the most active oil and gas
producing regions in the United States.
Midland Basin System
Overview
Brazos’ buildout of new Midland Basin gas midstream
infrastructure is anchored by the installation of a new 200 million
cubic feet per day (“MMcf/d”) cryogenic gas processing facility
(Sundance I) located in Martin County, Texas. The plant is
mechanically complete and will commence operations in October 2024.
The Company is also in the final stages of constructing
approximately 175 miles of 16-inch through 24-inch high-pressure
natural gas gathering pipeline and other associated midstream
infrastructure spanning the core of the Midland Basin, including
Ector, Howard, Martin, Midland, Glasscock, and Reagan counties.
Upon completion of this initial phase of construction, Brazos will
operate approximately 260 total miles of natural gas gathering
pipelines and 10 compressor stations in the Midland Basin.
To accommodate forecasted production growth, the Company also
announced that it will construct an additional 300 MMcf/d cryogenic
gas processing facility, which is expected to be operational in the
second half of 2025 and, once complete, will bring the Company’s
total processing capacity to 500 MMcf/d.
This new, expansive gathering and processing system is owned by
Brazos Midstream Holdings III, LLC, which is backed by equity
commitments from Old Ironsides Energy, Encap Flatrock Midstream,
Brazos management and other strategic investors. In addition,
Brazos announced that it has recently closed a new preferred equity
investment with EOC Partners, Elda River Capital, and co-investors
and has significantly upsized its existing revolving credit
facility, led by BOK Financial. These partnerships allow Brazos the
financial strength and flexibility to continue to aggressively grow
its footprint.
Management Perspective
“These expansion projects are a testament to our continued
commitment to build high-quality assets in the Permian Basin and
provide the highest level of service for our producer customers,”
said Brad Iles, Brazos Chief Executive Officer. “The Permian Basin
accounts for a quarter of all marketed natural gas production in
the Lower 48 and, despite being discovered over a century ago,
production is estimated to continue increasing for years to come.
Our asset base represents mission critical infrastructure that
provides reliable capacity for existing Permian gas production that
has been historically underserved.”
Delaware Basin Overview
Brazos operates a significant midstream footprint in the core of
the Southern Delaware Basin, including Loving, Pecos, Reeves, Ward,
and Winkler counties. The assets are owned by Brazos Midstream
Holdings II, LLC, with Morgan Stanley Infrastructure Partners as
its majority investor, and include the Comanche natural gas
processing complex which is located in Reeves County and consists
of 460 MMcf/d of total operated processing capacity. The Company
also owns and operates approximately 900 miles of natural gas,
natural gas liquids, and crude oil gathering pipelines and 75,000
barrels of crude oil storage that service production from
approximately 540,000 dedicated acres and over 25 upstream producer
customers, composed primarily of large, publicly traded and
investment grade companies.
About Brazos Midstream
Headquartered in Fort Worth, Texas, the Brazos Midstream
entities collectively represent the largest privately held
midstream platform in the Permian Basin. On a combined basis, the
Company’s critical hydrocarbon infrastructure totals approximately
1,200 miles of high-pressure natural gas, natural gas liquids and
crude oil gathering pipelines spanning the most prolific producing
counties in the Midland and Delaware Basins; 660 MMcf/d of total
Permian-based processing capacity with expansion projects underway
to expand to approximately 1 Bcf/d by 2025; and 75,000 barrels of
crude oil storage.
For more information, please visit www.brazosmidstream.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20240815716079/en/
Brazos Media Contact: Meggan Morrison Redbird
Communications Group meggan@redbirdpr.com