Solaris Water Midstream LLC acquired a significant New Mexico water supply business as the Houston company launched construction of a major expansion in the Delaware Basin this week.

Solaris Water closed on the acquisition of the water supply assets from family-owned Vision Resources Inc., the company said June 5.

Though terms of the transaction weren't disclosed, Solaris Water said the assets were located in areas that strategically complement the company’s Pecos Star System in the Delaware Basin.

Solaris Water also announced on June 5 that it has started construction of a new 11-mile water supply line that will connect into its Pecos Star System.

The Pecos Star System, located in Eddy and Lea counties, N.M., and Culberson and Loving counties, Texas, offers oil and gas producers access to integrated water, transportation, disposal and recycling infrastructure in the prolific Delaware Basin.

The high-capacity pipeline under construction will be capable of transporting roughly 150,000 bbl/d of water from Loving to Eddy and is expected to come into service in July, the company said.

Additionally, the acquisition from Vision added water rights for more than 15 million barrels of industrial water per year, access to significant sources of water, freshwater storage ponds, more than 200 miles of water supply pipelines of varying sizes and associated rights-of-way to Solaris Water’s system.

The integration of the water supply business acquired from Vision means that Solaris Water’s Pecos Star System now provides oil and gas producers in Eddy with a “one-stop source of full-cycle water services” including water supply and transportation, according to the company press release.

Solaris Water Midstream CEO Bill Zartler (Source: Solaris Water)

Solaris Water Midstream CEO Bill Zartler said the area is currently generating some of the best production results in the Permian, but operators are constrained by limited sources of water.

“Our goal is to build the premier water infrastructure system in the Delaware Basin and these two new steps advance that goal,” Zartler said in a statement.

In conjunction with the acquisition, Jason Maley joined Solaris Water as senior vice president of water supply from Vision, where he led the successful development of the company’s strategy. Vision’s team of 20 will also join Solaris Water and continue to work from Carlsbad, N.M., the release said.