Lucid Energy Group announced the startup on May 23 of the Red Hills II cryogenic natural gas processing plant in the Delaware Basin Lea County, N.M.Lucid Energy Delaware Basin Red Hills II Cryogenic Processing Plant New Mexico

With the expansion, the Red Hills Natural Gas Processing Complex has the capacity to process 310 million cubic feet per day (MMcf/d). This brings the total processing capacity of Lucid’s South Carlsbad Gas Gathering and Processing System in Lea and Eddy counties to 345 MMcf/d and as a result tripled its processing capacity since the Dallas-based company's acquisition of Agave Energy Co. in September 2016.

The South Carlsbad System serves producers developing the prolific Wolfcamp, Bone Springs and Avalon formations of the northern Delaware Basin.

In addition, Lucid said it remains on schedule with its previously announced Roadrunner cryogenic processing plant. Roadrunner I, the first plant at the Roadrunner Complex in Eddy, is a 200 MMcf/d plant, which will bring the total capacity of the South Carlsbad System to 545 MMcf/d in January 2018.

“We are excited to announce we have successfully brought the Red Hills II cryogenic processing plant online ahead of schedule,” Jay Langham, Lucid executive vice president and COO, said in a statement. “As a result of the rapid execution of the Lucid team, we have provided immediate capacity and reliability for our Delaware Basin customers in Eddy and Lea counties. Consistent with our commitment to continuing to provide superior service to our customers, our team now shifts focus to processing expansions in Eddy County.”

The location of the Roadrunner Complex is strategic to the company’s existing infrastructure and customer base in the northern Delaware Basin, according to the company release.