DALLAS—San Mateo Midstream LLC on April 19 announced the completion and successful start-up of the expansion of the Black River cryogenic natural gas processing plant in Eddy County, N.M.

The expansion of the Black River Processing Plant adds an incremental designed inlet capacity of 200 million cubic feet per day (MMcf/d) of natural gas to the previously existing designed inlet capacity of 60 MMcf/d for a total designed inlet capacity of 260 MMcf/d.

The expanded Black River Processing Plant will support San Mateo’s anchor tenant, Matador Resources Co. (NYSE: MTDR) and offer processing opportunities for other producers’ development efforts in the Delaware Basin.

San Mateo has also completed an NGL pipeline connection at the Black River Processing Plant to the NGL pipeline owned by EPIC Y Grade Pipeline LP. This NGL connection provides several significant benefits to San Mateo’s customers as compared to trucking the NGL out of the area. San Mateo’s customers receive

  • Firm NGL takeaway out of the Delaware Basin;
  • Increased NGL recoveries;
  • Improved pricing realizations through lower transportation and fractionation (T&F) costs; and
  • Increased optionality through San Mateo’s ability to operate the Black River Processing Plant in ethane recovery mode, if desired.

In addition, San Mateo expects the NGL connection to lower operating costs at the Black River Processing Plant and provide operational advantages as transportation by pipeline rather than by truck reduces operational risks, such as weather-related interruptions or insufficient trucking capacity.

“We are excited to announce that the expansion of the Black River Processing Plant was completed both on time and on budget,” said Matt Spicer, vice president and general manager of San Mateo. “The expanded Black River Processing Plant provides producers in the area takeaway and processing for their natural gas production. Along with the addition of the NGL connection, the Black River Processing Plant and associated residue gas pipeline provide producers reliable transportation for natural gas and NGLs out of the basin.

“As a result of the strong execution of the entire San Mateo team, we believe we have generated significant value for our stakeholders and an attractive natural gas processing option for producers in the area.”