Midland-based XRI Holdings, LLC recently completed its Northern Delaware Basin Supersystem, a water pipeline system crossing core oil and gas development areas in New Mexico. The new infrastructure, which spans 125+ miles of Lee and Eddy counties, will be supplied in part by recycled produced water volumes from the company’s own water terminals and treated with Fountain Quail Water Management technologies.
XRI states that this new supersystem will be able to transport more than 100 million bbls of water per annum. Water will be delivered to customers across the Delaware Basin through a network of buried 16-in. and 20-in. pipelines, pump stations and storage facilities. In total, this network will allow XRI to transport an additional 350,000 b/d of industrial and non-potable water.
The company will deliver these services to Delaware Basin operators under multi-year, fee-based contracts. Discussions are also underway with other Delaware producers to expand the supersystem’s transport and supply capacity over time.
XRI’s supersystem promises to add much-needed transport capacity at the same time that companies in the greater Permian Basin are filing permits for more saltwater disposal (SWD) wells. Last month, we reported that 95 new SWD well permits were filed in Texas and just last week, six companies filed 20 additional drilling permits for SWD wells in the Permian. News like this reinforces a common theme we continue to hear in the Permian: “Water is the new oil.”
Check back with EnergyMakers as we keep following new trends and developments in the West Texas oil, gas and water production arena.
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