Hart Energy has learned that Lucid Energy Group expects to bring its 200 million cubic feet per day (MMcf/d) Roadrunner cryogenic natural gas processing plant in Eddy County, N.M., into service in December, a month ahead of schedule.
The company is also considering placing its next gas plant there, a possible change from the original plan to put it adjacent to the Red Hills II plant, also 200 MMcf/d, that was put into service in May in Lea County, N.M.
“As we go into execution mode on our plans, speed is the critical consideration for us and for our producer counterparties,” said Mike Latchem, president and CEO of Lucid. “Red Hills II was a little ahead of schedule and we believe Roadrunner will be a month ahead. That is all related to the success of the wells in northern
Latchem told Hart Energy that Lucid has already purchased its third 200 MMcf/d plant as it mulls where to place it.
“Originally the plan was to put it in Lea County and make it Red Hills III, but it may end up in Eddy County as Roadrunner II. Oil is the target in those areas but the gas is prolific.”
With the expansion, the Red Hills Natural Gas Processing Complex grew to be able to process 310 MMcf/d. That took total processing capacity of Lucid’s South Carlsbad Gas Gathering and Processing System in Lea and Eddy counties to 345 MMcf/d, tripling processing capacity since Lucid’s acquisition of Agave Energy in September 2016.
Lucid is active across midstream services in the Permian—both Delaware and Midland basins. The company claims primacy as the largest privately held gas processor in the Permian Basin with more than 930 MMcf/d capacity in operation or under construction and pipeline assets exceeding 1,900 miles in operation. Lucid is a portfolio company of EnCap Flatrock Midstream, which manages investment commitments of nearly $6 billion from a broad group of institutional investors.
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