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LM Energy Unloads 130 Miles of Pipelines in New Mexico Oil Gathering Asset Sale
10/06/2023![LM-Energy-Unloads-130-Miles-of-Pipelines-in-New-Mexico-Oil-Gathering-Asset-Sale](https://images2.rextag.com/public/blog/Post 188 Blog_LM Energy Unloads 130 Miles of Pipelines in New Mexico Oil Gathering Asset Sale.png)
LM Energy Holdings is set to sell assets including over 130 miles of pipelines, terminals, and other facilities in Eddy and Lea, New Mexico, Delaware Basin.
LM Energy Holdings LLC has concluded definitive agreements to divest subsidiaries and assets associated with its Touchdown Crude Oil Gathering System situated in Eddy and Lea counties, New Mexico. The purchasing entity and financial particulars remain undisclosed.
Included Assets
- Location: Eddy and Lea counties, New Mexico
- Pipelines: Over 130 miles
- Terminals: Two, with a combined storage capacity of 136,000 bbl
- Development Commencement: 2019
- Volumes: Approximately 75,000 bbl/d
Elliot Gerson, the CEO of LM Energy, emphasized that this deal fortifies LM’s financial standing and narrows its focus to its gas ventures.
Continuing its escalation in gas-gathering systems in the mentioned counties, LM Energy offers an array of services including low-pressure gathering, dehydration, compression, liquids handling, and high-pressure gathering. It has developed over 70 miles of additional pipelines and plans to inaugurate its sixth compressor station in the last quarter of 2023.
Gerson highlighted the surging gas volumes in the Northern Delaware Basin and the increasing endeavors by operators and regulatory bodies to curb flaring, indicating a burgeoning demand for more gas gathering and processing infrastructures.
“With our present team, assets, and alliances, we are uniquely poised to persist in expanding our gas operations,” Gerson articulated.
The transaction involving the Touchdown is scheduled to be finalized in the fourth quarter of 2023.
About LM Energy
LM Energy, established in 2019 and headquartered in Dallas, is a midstream oil and gas company. The firm stands out for its commitment to operational excellence and superior customer service in the Delaware Basin. It provides a range of integrated midstream solutions, including crude oil and natural gas gathering, compression, dehydration, condensate handling, and vapor recovery services. LM Energy focuses on fulfilling the diverse needs of its producer clients efficiently and reliably.
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Triple Advantage Vital Energy's $1 Billion M&A Enhances Permian Portfolio, Cash Flow
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Vital Energy, focused on the Permian Basin, plans quick debt reduction after securing $1.165 billion in deals, adding key Midland and Delaware basin inventory.
Baker Hughes Confirms a Third Weekly Decline in US Oil and Gas Rigs
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In a recent announcement, energy services firm Baker Hughes stated that U.S. energy companies have decreased the number of operating oil and gas rigs for the third successive week. This development marks the first such consistent reduction since early September. As of October 6, the count for oil and gas rigs, considered a precursor to future production levels, has seen a decline by four, positioning it at 619. This is the lowest figure recorded since February of the preceding year. The overall rig count has decreased by 143 or 19% when compared to last year's statistics.
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The pipeline industry in the USA faced and still faces a range of regulatory challenges, including permitting delays, environmental requirements, and public opposition to pipeline projects. In recent years, pipeline projects like the Keystone XL and Dakota Access pipelines had legal and regulatory obstacles that delayed or canceled their construction. Keystone XL Pipeline, proposed by TransCanada in 2008, aimed to transport crude oil from Canada (around Calgary and Edmonton) to refineries on the Gulf Coast (Port Arthur). The project faced opposition from environmental groups and indigenous communities, who argued that it would contribute to climate change and pose a risk to water resources. In 2015, President Obama rejected the project, citing concerns about its environmental impact. However, in 2017, President Trump revived the project, leading to further legal challenges. In June 2021, U.S. President Joe Biden officially canceled the project on his first day in office.
![$data['article']['post_image_alt']](https://images2.rextag.com/public/blog/282_Blog_Renewable Natural Gas How RNG Changes the Industry.jpg)
The renewable natural gas (RNG) industry in the United States is showing promising signs of growth. As of 2019, the U.S. consumed 261 billion cubic feet (BCF) of RNG, primarily utilized by independent power producers, electric utilities, and various commercial and industrial entities. However, this figure represents only a small fraction of its potential. Research indicates that the U.S. could theoretically produce up to 2,200 BCF of RNG through anaerobic digestion alone, which would equate to about 11% of daily national natural gas consumption.
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