The company Trace Midstream Partners II, LLC announced the construction of the Apollo Gas Plant, a new natural gas processing facility that will strengthen the energy infrastructure of the northern Delaware Basin. The project will be located in Eddy County, New Mexico, and will have a capacity of 250 million cubic feet per day (MMcf/d).
In addition to the plant, the company will develop 36 miles of gathering pipelines and two compressor stations, an expansion supported by long-term contracts signed with current and new customers. The infrastructure is scheduled to become operational during the fourth quarter of 2027.
Apollo Gas Plant to Expand Natural Gas Processing
With this investment, Trace will expand its presence in the natural gas value chain by incorporating processing capacity into its existing gathering, compression, and transportation network.
Josh Weber, CEO of Trace Midstream, explained that the Apollo plant will provide an integrated solution for producers in the region by concentrating the different services needed to move gas from the well to destination markets.
According to Weber, activity continues to grow in the northern Delaware Basin, so the company maintains its strategy of developing infrastructure to support the increase in natural gas production.
Midstream Network Expansion
Likewise, the Apollo plant is part of an investment program that the company has been executing for several years in the region.
Once the projects currently under construction are completed, Trace will operate more than 320 kilometers of pipelines, 14 compressor stations, and a capacity exceeding 125,000 horsepower of compression.
The company estimates that its integrated system will be able to gather and transport more than 800 million cubic feet per day of natural gas, consolidating itself as one of the most recently developed midstream networks in the northern Delaware Basin.
Investment Backed by Quantum Capital Group
Trace Midstream was founded in 2017 and is headquartered in Houston. The company develops and operates infrastructure for natural gas transportation and distribution in North America and is financially backed by Quantum Capital Group, a firm specializing in energy sector investments.
Since its inception, Quantum and its affiliates have managed over $33 billion in capital commitments, while Trace Midstream Partners II has over $600 million in investments contributed by Quantum, company management, and other private investors.
With the addition of the Apollo Gas Plant, Trace aims to offer producers in the northern Delaware Basin an integrated platform that simplifies natural gas gathering, compression, transportation, and processing operations, strengthening the capacity to evacuate production to markets.
Source: Trace Midstream
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