Solaris Water Midstream has begun operations at its newest large-scale water-reuse complex in New Mexico, the Eddy State Complex. The complex can supply 300,000 B/D of recycled produced water for operators in the northern Delaware Basin.
Th complex adds to the company’s ongoing recycling operations at its Lobo Reuse Complex in Eddy County and the Bronco Reuse Complex in Lea County. Two additional water-recycling centers are expected to be completed by December. When all five water-reuse complexes are operating, Solaris Water will have the capacity to recycle more than 900,000 B/D of produced water, with over 3 million bbl of adjacent storage capacity.
A satellite network of mobile recycling systems is also being developed by the company. "Together with the five water-reuse complexes, these mobile recycling systems will take advantage of our extensive produced-water pipeline network to support completions across a 2,500-square-mile area in southeast New Mexico," said Michael Incerto, senior vice president of water resources for Solaris Water.
Solaris Water has developed and operates an infrastructure system in the Permian Basin, which, in addition to its recycling capabilities, currently includes more than 500 miles of high-capacity water pipelines, over 1 million B/D of disposal capacity, and 2.5 million bbl of additional permitted disposal capacity.
"Recycling produced water at this unprecedented scale in New Mexico has always been one of our primary goals," said Bill Zartler, CEO of Solaris Water. "Our expansive pipeline infrastructure network makes it possible to aggregate hundreds of thousands of barrels of produced water every day from multiple operators in the basin, and then treat and recycle those barrels to our customers’ precise quality and flow specifications in the increasing volumes that operators are demanding."
"We work very closely with industry-leading E&P companies in the basin, including our joint venture partner, Concho Resources, a company that has a strong commitment to sustainability," said Solaris Water President Amanda Brock. "Solaris Water has set aggressive internal ESG targets for recycled produced water and is helping our customers meet and exceed their own ESG water targets. We are also looking ahead. Working with the New Mexico Water Research Consortium, the Produced Water Society, leading oil and gas operators and treatment technology companies, we are evaluating innovative new options for beneficial reuse of recycled produced water in New Mexico and beyond."
The company said it is on track to recycle 25 million bbl of produced water in 2020.
Formed last year, the joint venture with Concho included a long-term produced-water management agreement between the two companies. In July 2020 the companies extended and increased the scope of their long-term produced-water-management agreement, which previously covered all of Concho’s acreage in Eddy County to also include all of Concho’s acreage in Lea County.
Solaris Water now manages Concho’s produced-water gathering, transportation, disposal, and recycling for a 2.3-million-acre area of mutual interest located in Eddy and Lea counties in New Mexico.
Earlier this month, Houston-based ConocoPhillips announced it is buying Concho Resources, instantly making it a huge player in the Permian. The all-stock deal valued at $9.7 billion will add Concho’s 550,000-acre position and an oil-production rate of at least 200,000 B/D to ConocoPhillips’s portfolio, which has had only a small position in the richest shale play.