spwm nglNGL Energy Partners in September announced expansion of its service capabilities in New Mexico with the acquisition of 11.6 million barrels of water rights and 20 saltwater disposal wells in a $93 million acquisition of a pair of ranches in Lea and Eddy Counties.

As part of its Delaware Basin water infrastructure strategy, the acquisitions “position NGL as the premier provider of a menu of services including freshwater, recycling and treatment, cuttings landfill disposal and produced water disposal in the prolific New Mexico portion of the Delaware Basin,” according to a company statement.

The acquisitions include the 36,000-acre Beckham Ranch located atop the Carlsbad, Capitan, and Jal Water Basins in southeastern Lea County. The property includes approximately 9.6 million barrels of annual fresh water rights, the company said. 

In July, NGL acquired the 87,000-acre McCloy Ranch located in Eddy and Lea Counties. The purchase includes approximately 2 million barrels of annual water rights in the core of the Delaware Basin.

NGL now has water rights that exceed 30 million barrels annually and operates 27 disposal wells in the Delaware Basin, the company reported.

With its 122,000-acre land position in Lea and Eddy Counties, NGL is positioned to negotiate surface use agreements with producers and provide midstream water infrastructure access for “safe, reliable, and low-cost services to oil and gas producers in the basin.”

NGL is currently developing multiple water pipelines, including the Lea County Express Pipeline, that will originate near the Beckham and McCloy Ranches and transport produced water to NGL water disposal facilities in Texas and New Mexico, the company stated.