March 2018 Vol. 73 No. 3


Goodnight Midstream Permian

Goodnight Midstream

Goodnight Midstream Permian LLC’s binding Open Season for producers to enter into long-term contractual commitments for its Llano Produced Water Pipeline System (Llano Pipeline) closes on March 30, 2018.

Originating in Lea County, N.M., 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 superior geologic alternative for sustainable disposal of produced water into multiple formations.

The high-pressure pipeline, with an initial capacity of 200,000 barrels of water per day, 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 having the capability to accept produced saltwater at 50 psi.

Tariffs will vary depending on the structure of dedication and the location of a producer’s receipt point. Up to 80 percent of initial capacity will be reserved for producers entering into long-term commitments during this Open Season, and at least 20 percent will remain open for uncommitted producers seeking interruptible capacity.

To the extent bids exceed the Llano Pipeline’s capacity, Goodnight reserves the right to reduce the maximum capacity available to each bidding producer according to system priority, which will assign the highest priority to producers entering into long-term minimum volume commitments.

Dallas-based Goodnight Midstream provides oilfield water management services to oil and gas producers. The company’s approach minimizes environmental impact, and improves health and safety, while lowering lease operating expense and improving reliability for its customers.

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