Brazos Midstream acquires Callon’s natural gas gathering system in US

Subsidiaries of Brazos Midstream have completed the purchase of a natural gas gathering system in the Delaware Basin, US, from Callon Petroleum Company.

Under the acquisition deal, Callon reached an agreement to provide gas gathering and processing services for Brazos’ acreage under development in Ward and Pecos counties in the Southern Delaware Basin.

Through the strategic acquisition, Brazos intends to become one of the largest private natural gas and crude oil midstream companies in the Delaware Basin.

Brazos Midstream chief commercial officer Stephen Luskey said: “The acquisition of these strategic assets builds upon our existing franchise position and provides a platform for growth in an area we know well.

“Callon is one of the leading pure-play Permian operators and we are pleased to be able to manage their gas infrastructure needs.

“We look forward to a long-term partnership with Callon and other producers as we grow in one of the most promising regions in our industry.”

The company intends to connect the acquired natural gas gathering system to its existing system and the previously announced Comanche II natural gas processing plant, where construction has begun in May this year and operations are expected to commence during the first quarter of next year.

The plant is set to expand the company’s total operated processing capacity to 260mmcfd.

In addition, plans are in progress to build a third natural gas processing plant, Comanche III, in order to meet continued volume growth in the region.

Having secured a site for the Comanche III plant, the company will start construction early next year.

Brazos currently operates around 275m of natural gas and crude oil pipeline, a natural gas processing complex, in addition to nearly 50,000 barrels of crude oil storage in the Delaware Basin.