Brazos Midstream has announced the successful completion of several key projects, featuring new pipelines and processing facilities in the Midland Basin, one of the most prominent oil and gas production areas in the United States.
The company’s new Midland Basin gas midstream infrastructure is highlighted by the installation of the Sundance I cryogenic gas processing facility, which has a capacity of 200 million cubic feet per day (MMcf/d) and is located in Martin County, Texas. This facility is expected to begin operations in October 2024. Additionally, Brazos is nearing the completion of approximately 175 miles of high-pressure natural gas gathering pipelines, ranging from 16 inches to 24 inches in diameter, along with other associated midstream infrastructure across several counties, including Ector, Howard, Martin, Midland, Glasscock, and Reagan. Once this initial construction phase concludes, Brazos will manage a total of around 260 miles of natural gas gathering pipelines and 10 compressor stations in the Midland Basin.
To support anticipated production growth, the company has also announced plans for a new cryogenic gas processing facility with a capacity of 300 MMcf/d, projected to become operational in the latter half of 2025. This expansion will elevate Brazos’ total processing capacity to 500 MMcf/d.
The new gathering and processing system will be owned by Brazos Midstream Holdings III, LLC, which has secured equity commitments from Old Ironsides Energy, Encap Flatrock Midstream, Brazos management, and other strategic investors. Furthermore, Brazos recently finalized a preferred equity investment with EOC Partners, Elda River Capital, and co-investors, while also significantly increasing its revolving credit facility, led by BOK Financial. These financial arrangements are designed to provide Brazos with the resources necessary to continue expanding its operations.
Brad Iles, the Chief Executive Officer of Brazos, remarked on the significance of these projects, stating, “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.” He highlighted that the Permian Basin constitutes a quarter of all marketed natural gas production in the Lower 48 states, with production forecasts indicating sustained growth for years to come. Iles emphasized that the company’s infrastructure is crucial in providing reliable capacity for the historically underserved gas production in the region.
In the Southern Delaware Basin, Brazos maintains a considerable midstream presence, particularly in Loving, Pecos, Reeves, Ward, and Winkler counties. The assets in this area are owned by Brazos Midstream Holdings II, LLC, with Morgan Stanley Infrastructure Partners as its primary investor, and feature the Comanche natural gas processing complex in Reeves County, boasting a total operated processing capacity of 460 MMcf/d. Additionally, Brazos operates approximately 900 miles of gathering pipelines for natural gas, natural gas liquids, and crude oil, along with 75,000 barrels of crude oil storage, servicing production across roughly 540,000 dedicated acres and over 25 upstream producer clients, primarily comprising large, publicly traded, and investment-grade companies.
For more information visit www.brazosmidstream.com
