LM Energy Expands New Mexico Gas Gathering System, Boosts Capacity to 500 MMcf/d
By Mary Holcomb, Digital Editor
(P&GJ) — LM Energy Holdings LLC has entered into definitive long-term agreements with multiple top-tier producer customers to support significant expansions of its gas gathering systems in Eddy and Lea counties, New Mexico.
LM has begun constructing multiple new compressor stations and approximately 70 miles of new, large-diameter, low-and-high-pressure gas pipelines, including a 27-mile, 20-inch high-pressure pipeline that will connect the company’s existing Touchdown gas gathering system to multiple gas processing facilities near Loving, New Mexico.
The new high-pressure pipeline will provide over 300 million cubic feet per day (MMcf/d) of critical delivery capacity out of the North Carlsbad area. Upon completion of the planned expansion projects, which will enter service throughout the second half of 2024 and the first half of 2025, LM’s systems will consist of 10 compressor stations and 150 miles of gas gathering pipelines with a total capacity of approximately 500 MMcf/d.
“The successful commercialization of these growth projects with multiple blue-chip customers is a testament to the strategic positioning of our assets and our relentless focus on customer service,” Elliot Gerson, CEO at LM, said. “Upon completion, our system will provide our customers with much-needed flow assurance and unlock their plans to aggressively develop this extremely high-quality acreage.”
Last September, LM Energy agreed to sell certain subsidiaries and assets linked to its Touchdown Crude Oil Gathering System in Eddy and Lea counties, New Mexico. The deal closed during the fourth quarter of 2023, marking a strategic shift for LM Energy, redirecting its focus towards its gas business.
LM Energy had initially ventured into crude oil gathering in 2019, developing over 130 miles of pipelines and two terminals with a combined storage capacity of 136,000 barrels. The company achieved impressive growth, ramping up volumes from zero to approximately 75,000 barrels per day entirely through greenfield development efforts.
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