... Santa Fe Midstream Starts Construction on San Andres Play Gas Facilities

Santa Fe Midstream Starts Construction on Midstream Gas Facilities in San Andres Play

Santa Fe Midstream LLC has begun construction on natural gas gathering, treating and processing system in the San Andres play in the Permian Basin. The company announced Sept. 8 that construction commenced in August 2017 and the initial natural gas facilities will be operational by the second quarter of 2018.

Santa Fe is also developing a crude oil gathering system in the area. Santa Fe’s natural gas and crude oil midstream facilities will be located in Yoakum, Gaines and Cochran counties in Texas as well as Lea County, New Mexico. The facilities will initially serve a substantial dedication from a leading producer sponsored by a large energy private equity fund.

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“Due to the increasing activity and rapid growth of the San Andres play in Yoakum, Cochran and Gaines counties, producers have expressed significant interest in new crude oil and natural gas gathering infrastructure. Santa Fe is pleased to provide the new facilities, best in class service and optimal netbacks as requested by producers in this area,” said Amer Rathore, Santa Fe Managing Partner and Founder.

Residue from the natural gas processing plant and treating facilities located near Denver City, Texas, will be delivered to El Paso Natural Gas’ interstate pipeline with access to the WAHA hub and Western U.S. natural gas markets. Natural gas liquids will be delivered to Enterprise Products’ Chaparral Pipeline for transportation to Mt. Belvieu, Texas. “By connecting to multiple crude oil markets as well as premium natural gas and liquids markets, Santa Fe will provide the best possible netbacks for producers in the area,” said Greg Kegin, Santa Fe Managing Partner and CEO. “We look forward to supporting producers’ drilling plans by expanding our system.”

Please contact Cliff Rupnow, Managing Partner and VP of Commercial at (214) 308-9623 or (817) 239-5547 for more information.

Based in Plano, Texas, Santa Fe Midstream provides natural gas gathering, compression, treating and processing, crude oil gathering and transportation, produced water handling, as well as condensate and NGL products marketing services. The company is backed by Dallas-based Energy Spectrum Capital’s fund Energy Spectrum Partners VII LP.

Energy Spectrum Capital is a midstream-focused private equity firm that has raised over $3.5 billion in capital commitments focused on investing in North America’s energy infrastructure. Since its inception in 1996, Energy Spectrum has sponsored over 50 portfolio companies.


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