San Mateo Midstream, LLC has announced that its wholly-owned subsidiary, DLK Black River Midstream, LLC, has entered into a long-term agreement with a producer in Eddy County, New Mexico relating to the gathering and processing of such producer’s natural gas production. As a result of this agreement, along with prior natural gas gathering and processing agreements entered into by San Mateo’s other customers, San Mateo has now entered into contracts to provide firm gathering and processing services for over 200 million ft3/d of natural gas, or over 80% of the designed inlet capacity of 260 million ft3/d of natural gas, at its Black River cryogenic natural gas processing plant (Black River Processing Plant) in Eddy County, New Mexico.
In March 2018, San Mateo completed a natural gas liquids (NGL) pipeline connection at the tailgate of the Black River Processing Plant to the NGL pipeline owned by EPIC Y-Grade Pipeline, LP. The NGL connection ensures San Mateo customers firm NGL takeaway out of the Delaware Basin and firm fractionation for those NGL volumes further downstream.
