Brazos Midstream, with an 85% interest, will operate a newly formed joint venture in the Delaware basin with Williams Cos. Inc. Under terms of the agreement, Williams will contribute its existing Delaware basin assets to the partnership in exchange for a 15% minority position.
The pro-forma combine assets include 725 miles of gas gathering pipelines, 260 MMcfd of natural gas processing, 75 miles of crude oil gathering pipelines, and 75,000 bbl of oil storage across Reeves, Loving, Ward, Winkler, Pecos, and Culberson counties in Texas. In addition, Brazos is currently constructing its 200 MMcfd Comanche III gas processing plant to be fully operational by first-quarter 2019, bringing the partnership’s total operated processing capacity in the Delaware basin to 460 MMcfd of gas (OGJ Online, Jan. 3, 2018).
The JV will be supported by more than 500,000 acres of long-term dedications now under full-field horizontal development from major and independent oil and gas producers.