Water management

NGL Energy, XRI Agree to Delaware Basin Water Collaboration

The companies will leverage each other’s experience and assets to offer full-cycle water-handling services in West Texas.

The duo will leverage assets and expertise in the Permian's Delaware Basin.
Source: Bluberries/Getty Images

Water players NGL Energy Partners and XRI Holdings have agreed on a collaboration to advance full-cycle produced-water management across operations in the prolific Delaware Basin. NGL owns and operates the largest integrated produced-water pipeline system in the basin where it currently manages more than 1.8 million BWPD. XRI is the largest produced-water recycling company in the Permian Basin, managing total water volumes in excess of 1.2 million BWPD.

Supported by NGL’s large volumes of produced water and XRI’s specialized recycling expertise, the collaboration will address the increasing demand for sustainable use of produced water in completions activities. The collaboration will leverage existing infrastructure assets, technology, and experience.

The flexible, nonexclusive nature of the joint effort allows each company to continue to operate produced-water reuse and recycling activities independent of one another.

“NGL remains steadfast in our commitment to delivering full-life-cycle water management for our customers while remaining focused on the environment and the sustainability of our operations,” said Doug White, executive vice president of NGL Water Solutions. “The collaboration with XRI will enable each company to focus on its individual strengths, maintain capital spending discipline, and gain economies of scale that provide cost benefits to customers. The result is a win-win for the environment and the industry.”

NGL’s Water Solutions segment operates an integrated network of wastewater pipelines in several of the most prolific crude oil and natural gas producing basins, including the Delaware, Midland, Eagle Ford and DJ basins. The company has more than 620 miles of large-diameter water pipeline in service.

Additional assets include over 110 water treatment and disposal facilities, including about 212 disposal wells across the Permian, Eagle Ford, DJ, Granite Wash, Pinedale Anticline, and Eaglebine. The company has a combined total of around 6.7 million B/D of permitted disposal capacity.

XRI is focused on the recycling and reuse of produced water for the upstream oil and gas industry. The company maintains more than 400 miles of midstream infrastructure and more than 30 recycling facilities in the core operating regions of the Permian Basin.