Trace Midstream Partners II LLC is building a grassroots cryogenic natural gas processing plant and associated infrastructure to expand its existing ability to serve producers in the Northern Delaware basin of New Mexico.

Scheduled for construction in Eddy County, NM, and supported by multiple long-term contracts from both new and existing customers, the proposed Apollo gas plant will be equipped to process 250 MMcfd of natural gas, Trace said June 24.

Trace said the project also will include construction of 36 miles of gathering pipelines and two new compressor stations that, together, will provide an integrated midstream outlet for Northern Delaware basin producers across New Mexico’s Eddy and Lea counties.

The new gas plant and associated low-pressure gathering and compression system are scheduled to enter service fourth-quarter 2027.

Part of its strategy to continue investing to support a surge in Northern Delaware basin production, Trace said the Apollo gas plant and associated infrastructure, once operable, will expand its existing system-wide operations to more than 200 miles of pipelines, 14 compressor stations, and more than 125,000 hp of compression.

Trace, a portfolio company of Quantum Capital Group, acquired Northern Delaware basin gas gathering and transportation assets from LM Energy Delaware LLC in 2024.