(Oil & Gas 360) – Matador Resources Company announced November 2 that its San Mateo Midstream joint venture has secured two long-term natural gas agreements with a major Delaware Basin producer, supporting an expansion of processing and pipeline infrastructure in southeastern New Mexico.
The agreements include a new fixed-fee contract covering natural gas gathering, treating, and processing from dedicated acreage in Lea and Eddy counties, along with an extension of an existing agreement at San Mateo’s Black River processing plant. Matador did not identify the producer or disclose the financial terms.
San Mateo, owned 51% by Matador and 49% by Five Point Infrastructure, expects the contracts to increase third-party volumes and support long-term revenue growth.
To accommodate the additional production, San Mateo plans to construct a 300 million cubic feet per day natural gas processing train at its Marlan complex in Eddy County.
The project also includes a nitrogen rejection unit, approximately 20 miles of new natural gas pipeline, and a carbon dioxide treating facility.
Completion is targeted for the end of 2028, subject to permitting, equipment procurement, and construction schedul...