Trace Midstream Partners II LLC (Trace Midstream) has entered into agreements with LM Energy Delaware LLC (LM Energy) to acquire its natural gas gathering and transportation assets in the Northern Delaware Basin. Located in Eddy and Lea counties in New Mexico, LM Energy’s natural gas gathering and transportation system consists of high- and low-pressure gas pipelines with associated compression, dehydration, condensate handling, and vapor recovery capabilities. Currently, LM Energy is in the process of constructing multiple new compressor stations, new gathering pipelines, and a 20-in. (508-mm) diameter high-pressure transportation pipeline that will connect the existing gas gathering system to a number of gas processing facilities near Loving, New Mexico. Upon completion of these projects, the system will consist of approximately 170 miles (273 km) of pipeline and 12 compressor stations, with a total design capacity of 650 MMcf/d (18.4 x 106 m3/d). The system has over 80,000 dedicated acres (32,374 ha) and is supported by long-term, fixed-fee contracts from multiple producers.
“This acquisition marks a significant milestone for Trace Midstream as we enter the Northern Delaware Basin. We are excited to build upon LM Energy’s already well-executed system and track record of success,” said Josh Weber, CEO of Trace Midstream. “With substantial natural gas midstream constraints across the Northern Delaware, we are committed to expanding LM Energy’s assets and providing additional services for the region’s producers.”
