Vaquero Midstream, a midstream natural gas company, has unveiled plans for two significant system expansion projects in the Delaware Basin designed to boost gathering capacity and processing capabilities across parts of Texas. 

According to the company’s release on Tuesday, the expansion project includes a new 70-mile (approx. 113km), 24-inch high-pressure pipeline loop and a 200 million cubic feet per day cryogenic processing plant.

This will enhance Vaquero’s ability to gather natural gas from the Texas state line area south to its processing complex near the Waha Hub. 

The pipeline loop will originate near Waha in Pecos County and connect into Vaquero’s existing infrastructure in Loving County, effectively doubling the company’s gathering capacity on its legacy system from 400 MMcf/d to approximately 800 MMcf/d.

Planned to be operational by the end of 2025, the pipeline expansion will extend Vaquero’s footprint into parts of Ward, Winkler, and Loving counties, improving gas flow from the northern parts of its system as production grows.

“Vaquero is dedicated to maintaining its position as one of the most reliable midstream operators in the Delaware Basin,” said Harrison Holmes, CEO of Vaquero Midstream.

 “This expansion… will be key in providing direct access on the Vaquero’s system from northern Reeves and Loving Counties, Texas, to our processing complex near Waha.”

The new cryogenic processing plant is expected to be operational a year later (in 2026), increasing Vaquero's total processing capacity in the Delaware Basin to 600 MMcf/d. 

Justifying the viability of the project, Vaquero Midstream cited existing power and downstream infrastructure as factors supporting the operational efficiency of the new plant.

Both projects will be partly funded by a recently announced $400 million credit facility led by BOK Financial.