LM Energy Holdings LLC, Dallas, agreed to sell certain subsidiaries and assets related to its Touchdown crude oil gathering system in Eddy and Lea counties, New Mexico, as part of a plan to focus on its natural gas gathering systems in the northern Delaware basin, the company said in a release Sept. 26.
LM’s crude oil gathering business includes over 130 miles of pipelines, two terminals with 136,000 bbl of combined storage capacity. Volumes on the system have grown to about 75,000 b/d on a 100% greenfield basis, the company said.
Natural gas gathering
The company is positioned to continue growing its natural gas gathering business, said Elliot Gerson, chief executive officer.
“Gas volumes in the northern Delaware basin continue to outperform expectations, and meanwhile operators and regulators are increasing their focus on eliminating flaring. That combination creates a massive need for additional gas gathering and processing infrastructure,” he said.
LM has continued expanding its gas gathering systems in Eddy and Lea counties, New Mexico, which currently provide low pressure gathering, dehydration, compression, liquids handling, and high pressure gathering services. The company has constructed over 70 miles of pipelines and will commission its sixth compressor station in this year’s fourth-quarter.
The deal, with an undisclosed buyer, is expected to close in fourth-quarter 2023.
