Vaquero Midstream, a natural gas gathering and processing midstream company operating in the Delaware Basin, announced plans for two major system expansion projects – a new 70-mile 24-inch high-pressure pipeline loop and a 200 million cubic feet per day (MMcf/d) cryogenic processing plant to increase Vaquero’s gathering capabilities from the state line area down to its expanded processing complex near the Waha Hub area in Texas.
“Vaquero is dedicated to maintaining its position as one of the most reliable midstream operators in the Delaware Basin,” said Harrison Holmes, Chief Executive Officer of Vaquero Midstream. “This expansion of our gathering system will be key in providing direct access on the Vaquero’s system from northern Reeves and Loving Counties, Texas, to our processing complex near Waha. Our continued goal is to offer producers a unified gathering platform, supported by downstream market connectivity and reliable power infrastructure.”
Gathering system expansion
- 70-mile 24-inch high-pressure pipeline
- Originates at Vaquero’s processing complex near Waha in Pecos County, Texas, and connects into Vaquero’s existing high-pressure pipeline in Loving County, Texas
- Increases gathering capacity from Vaquero’s legacy system from 400 MMcf/d to approximately 800 MMcf/d
- Significant hydraulic benefit for gathering gas from the northern end of Vaquero’s system as volumes in the area grow over the next few years
- Will increase Vaquero’s gathering footprint through parts of Ward, Winkler, and Loving Counties, Texas
- Expected to be in service by year-end 2025
Cryogenic processing plant
- New 200 MMcf/d processing plant
- Grows Vaquero’s processing capacity in the Delaware Basin to 600 MMcf/d
- Operational and installation efficiency bolstered by existing power and downstream (residue gas and NGL) infrastructure
- Expected in-service date of March 2026
Both projects will be supported by a portion of the company’s recently announced $400 million credit facility, led by BOK Financial.
