Tulsa-based NGL Energy Partners LP has signed a long-term extension and expansion of an acreage dedication with an existing customer in the Permian Basin. 

NGL Energy Delaware Assets

The agreement with an undisclosed customer is for an operating area in New Mexico’s Lea and Eddy counties within the Delaware sub-basin, NGL said. The acreage dedication through 2027 was increased by 22,000 acres to a total of 122,000 acres.

“The renewal and extension of this agreement is a huge accolade to the NGL team, as it again demonstrates our ability to continually execute on produced water transportation and disposal needs of our customers in an unrivaled safe, efficient and reliable manner,” said NGL’s Christian Holcomb, COO of the Water Solutions unit.

NGL transports, stores, markets and provides logistics services for oil, natural gas liquids and other products besides water.

The midstream partnership owns and operates an integrated network of produced water pipelines, recycling facilities and disposal wells in the Permian Delaware and Midland sub-basins of Texas and New Mexico. It also has produced water systems in the Eagle Ford Shale in Texas and Colorado’s Denver-Julesburg Basin.

Last year, NGL expanded its Permian water network with the acquisition of Mesquite Disposals Unlimited LLC for $890 million. Mesquite had a fully interconnected produced water pipeline transportation and disposal system in Eddy and Lea counties and in Loving County, TX.

Combined with NGL assets, the Mesquite system was expected by the end of 2019 to have 35 saltwater disposal wells representing more than 1 million barrels per day of disposal capacity to serve exploration and production customers.