U.S. Select Energy to invest $25 mln in pipeline infrastructure project

U.S. Select Energy Services Inc., a water management solutions provider for energy producers, has started a new fixed pipeline infrastructure project serving both Eddy and Lea Counties, New Mexico in the Northern Delaware Basin.

Select Energy expects to infuse about $25 million in this fixed pipeline infrastructure, which is predicted to start operations by the third quarter of 2019.

The scheme is supported by a 5-year take-or-pay contract with a major international integrated oil company for the acquisition and delivery of 75 million barrels in total of water.

Initially, the pipeline system will support the provision of up to 100,000 barrels of water per day utilizing existing rights-of-way and source water rights from recently executed long-term supply agreements with industrial sources.