Layne Christensen Company recently began and completed a marine pipeline extension in the Delaware Basin.
Hermosa Water Pipeline
The company began working on the six-mile marine pipeline extension in December 2017. The extension was added to the existing Hermosa Pipeline system, which stretches 26 miles from Pecos, Texas into Reeves County. The Hermosa Pipeline, which contains 18 different delivery points, is responsible for delivering 175,000 barrels of water daily.
Layne completed the project earlier than expected. The extension is expected to help the company continue to deliver water resources necessary for the oil and gas line industry. The company has already moved on to other projects, such as the development of State of Texas General Land Office lands for water resources. Furthermore, Layne has begun working with oil and gas producers in the Delaware Basin area.
Thoughts On The Project
Chief Financial Officer and President of Layne Water Midstream, J. Michael Anderson, said that he was extremely satisfied to see the project completed both on budget and ahead of schedule. He mentioned that the marine pipeline had already been put to good use, and that water was sold through the extension as soon as construction was complete.
Anderson was also satisfied with the fact the company’s business was expanding into Reeves County. Many contractors in the oil and gas industry struggle in Reeves County because of the limited access to water there. The fact that Layne is making a push into Reeves County should help oil and gas exploration in the area.
Lastly, Anderson indicated that his company expects to see expected growth in the energy sector and the oil and gas industry in the coming years. He said that the Delaware Basin in an attractive spot for contractors for a number of reasons, such as producer economics and the efficiency of lateral water-per-foot length.