Vaquero Midstream to expand processing capacity in Southern Delaware Basin

THE WOODLANDS, Texas — Vaquero Midstream announced an agreement with its bank group to increase their revolving line of credit from $40 MM to $95 MM.  The increased bank capacity will be used to support the construction of a second 200 MMscfd cryogenic processing plant at the existing Caymus plant site located in Pecos County of the Southern Delaware Basin.

Photo courtesy of Vaquero Midstream.

Vaquero’s Lariat rich-gas gathering header transverses northwest from the Caymus facility near Waha through the heart of some of the highest GOR (Gas-Oil Ratio) production in the Southern Delaware Basin. Over 70 rigs are currently active within 10 mi of Vaquero’s gathering line. This drilling activity is driving volume growth for current customers as well as other potential new customers near the Vaquero rich-gas gathering header.

Upon completion of Caymus II plant construction, Vaquero will have 400 MMscfd of processing capacity in service at the site, with further expansion capability to over 1 Bscfd. Construction is estimated to be complete in Q1 2018.

In addition to the more than a dozen markets currently available to its producer customers through connections at the WAHA Hub, Vaquero is constructing an additional interconnect to the Roadrunner Gas Transmission pipeline taking gas into Mexico. This interconnect will supply the needs of the CFE and other Mexican market demand.  Producers on Vaquero’s system have seen the advantages of the liquidity of the WAHA market versus the constraints often encountered in other parts of the Basin.

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