WhiteWater Midstream commences natural gas pipeline construction in Delaware Basin, Texas

WhiteWater Midstream has commenced construction of the Agua Blanca Pipeline, an intrastate natural gas pipeline in the Delaware Basin, Texas.

This Agua Blanca pipeline will run from Orla, Texas, to Waha Hub and initially service portions of Culberson, Loving, Pecos, Reeves and Ward counties.

The pipeline will have several direct downstream connections, including to the Trans-Pecos Header.

WhiteWater chief executive officer Christer Rundlof said: “Agua Blanca will provide producers and processors with a much needed outlet for the rapidly growing natural gas volumes in the Delaware Basin.

“Our customers will have a direct path to multiple delivery points, including the attractive, growing Mexican power market.”

The project will consist of a 36in diameter pipe running to 75 miles with a capacity of 1.25bcf/d, which can be expanded to 1.75bcf/d.

The complete project is supported by more than 500mmcf/d of long-term, firm volume commitments.

WhiteWater Midstream expects to begin transport of the first volumes in the last quarter of this year through the pipeline.

Headquartered in Austin, WhiteWater Midstream specialises in gathering, treating, processing and transportation services to domestic oil and gas plays.

Founded last year, the company had received $200m equity commitments from Denham Capital Management and Ridgemont Equity Partners.

Denham Capital is a leading energy-focused global private equity firm, while Ridgemont Equity Partner is a growth equity investor.