Water Pipeline Extension Finished For West Texas O&G Drilling and Completion

February 12, 2018

 

More water is on the way to West Texas midstreamers with the early completion of a pipeline extension, building Layne Christensen Co. said Friday.

The six-mile extension of the 26-mile Hermosa water line started in December and is now ready for transmission.

The pipeline runs from Layne-owned land near Pecos northward in Reeves County with a capacity of 175,000 barrels of water per day to 18 delivery points along the route, for use in energy drilling and completion.

Layne Water Midstream subsidiary CFO and President J. Michael Anderson said, “We have already sold water through the extended pipeline, which expands our water midstream business further north into Reeves County where access to water is more limited for oil and gas producers.

“We expect to see continuing demand growth for water in the energy sector, especially in the Delaware Basin, due to attractive producer economics, longer horizontal drilling lengths, and more use of water per foot of lateral length.”