Goodnight Midstream Permian, LLC is conducting a binding open season to provide an opportunity for producers to enter into long-term contractual commitments for Goodnight’s Llano Produced Water Pipeline System.
The pipeline will be constructed in Lea County, New Mexico. The open season will commence on February 8, 2018 and close on March 30, 2018.
The Llano Pipeline will transport produced water from the central Delaware Basin to Goodnight’s saltwater disposal well system on the Central Basin Platform (CBP) in the Eunice area. Goodnight’s produced water system will utilize the depleted oil fields on the CBP as a geologic alternative for sustainable disposal of produced water into multiple formations.
The Llano Pipeline will begin at its origin point in Lea County. The high-pressure pipeline will have an initial capacity of 200,000 barrels of water per day and is supported by a long-term dedication from a key producer. The Llano Pipeline is anticipated to be placed in service in the fourth quarter of 2018.
Goodnight plans to construct multiple receipt points along the pipeline’s route with each receipt point having the capability to accept produced saltwater at 50 psi (see above image).
The company said that tariffs will vary depending on the structure of dedication and the location of a producer’s receipt point. Up to 80% of initial capacity will be reserved for producers entering into long-term commitments during this open season and at least 20% will remain open for uncommitted producers seeking interruptible capacity.
