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XRI completes water pipeline ‘supersystem’ in US

Water midstream company XRI Holdings has announced the completion of its Northern Delaware Basin Supersystem, with water pipeline infrastructure spanning more than 125 miles through Lea and Eddy Counties in the US state of New Mexico.

The news system will be supplied by environmentally responsible, non-potable and industrial water resources owned or controlled by XRI, as well as recycled produced water volumes from regional XRI Water Exchange Terminals, using the company’s Fountain Quail Water Management technologies.

The expansion of the Delaware Basin system complements XRI’s existing infrastructure in the region, which is located in Reeves and Loving Counties in Texas, serving multiple customers under multi-year contracts.

The supersystem will help XRI’s customers mitigate unnecessary disposal and water transportation costs through the blending, reuse and pipeline transportation of produced water volumes from its Water Exchange Terminals.

XRI has signed a long-term exclusive agreement with Kinder Morgan, under which XRI will source and deliver industrial-use water owned by Kinder Morgan in New Mexico.

The combined Delaware Basin Supersystem will be capable of producing more than 100 million barrels per year of industrial and non-potable water with pipeline throughput capacity of at least 350,000 barrels per day. Water is delivered via a network of 16-inch and 20-inch pipelines, pump stations and storage facilities.

“We are excited to see the impressive drilling results that our customers are delivering in the Delaware, and we are committed to continuing to expand our water infrastructure footprint to serve producers’ growing water needs efficiently and effectively across both the Delaware and Midland Basins,” said Matthew Gabriel, CEO of XRI. “XRI has established the leading third-party water infrastructure system in the Midland Basin and the expansion of our Delaware Basin footprint represents a natural extension of our company’s asset base and a commitment to provide economical, environmentally responsible, long-term water solutions to our customers throughout the Permian Basin.”