The federal government gave the green light to a proposal to build 234 miles of gas pipeline to transport natural gas liquids from one corner of New Mexico to the other and ultimately to markets in South Texas.
News of the pipeline’s approval encouraged oil and gas developers in New Mexico, which is home to portions of both the Permian and San Juan basins.
“These projects aren’t just built for the conditions at the moment. They’re long-term investments,” said Wally Drangmeister, a spokesman for the New Mexico Oil and Gas Association. “I think it’s a good sign that some investment is going in that will support the state.”
The project will transport natural gas liquid products from northwestern New Mexico to a hub in Hobbs in the southeastern corner of the state and ultimately to Texas.
With production increasing in the San Juan Basin and in the Rocky Mountains, Mid-America Pipeline Co.’s existing system is nearing capacity. Currently, the system can transport about 275,000 barrels per day, but more wells are going into production in New Mexico, Wyoming, Utah and Colorado