NGL expanding Delaware basin produced-water disposal system

NGL Energy Partners LP’s NGL Water Solutions is expanding its Lea County Express (LEX) water pipeline system to 340,000 b/d from 140,000 b/d. NGL expects to complete the LEX II expansion in 2024.

LEX II will include a 27-mile, 30-in. OD pipeline and disposal wells. NGL says the project will diversify the geography of its disposal operations and create a larger outlet for produced-water disposal in Delaware basin.

The expansion is fully underwritten by a minimum-volume commitment that includes an acreage dedication extension with what NGL describes as “an investment-grade oil and gas producer.”

LEX is expandable to 500,000 b/d.