Kings Landing Gas Gathering and Processing Development involves the expansion of Durango’s existing natural gas gathering and processing supersystem in the Permian Basin
The first phase of the project will have a 200 million cubic feet per day (MMcf/d) of nameplate natural gas processing capacity. (Credit: James St. John/ Flickr)
Durango Midstream has announced securing underwritten commitments that would support the construction of its Kings Landing Gas Gathering and Processing Development project in Eddy County, New Mexico, the US.
According to a company statement, Durango received the underwritten commitments from Wells Fargo Bank, National Association- led syndicate of commercial banks. This will upsize the company’s senior debt availability refinancing its existing credit facility.
The Kings Landing Gas Gathering and Processing Development (Kings Landing) involves the ongoing expansion of Durango’s existing natural gas gathering and processing supersystem in the Permian Basin of southeast New Mexico.
The first phase of the project will have 200 million cubic feet per day (MMcf/d) of nameplate natural gas processing capacity, maximum 225MMcf/d of processing capacity apart from improvements in compression, gas gathering, and liquids-handling infrastructure.
The second phase will see the addition of a new plant boosting increase nameplate processing capacity to a total of up to 450 MMcf/d at the complex.
Once complete, the project will improve Durango’s access to multiple markets for natural gas and natural gas liquids production, boosting flow assurance for its producers.
Phase I is expected to commence service during the fourth quarter of 2024.
Durango president and CEO Richard Cargile said: “Durango is excited to announce the continued expansion of our Permian Basin assets with the construction of Kings Landing.
“The Kings Landing project provides an essential capacity solution for our customers in Eddy and Lea Counties, New Mexico, the two most active counties in the US for oil and natural gas development. We are proud to be delivering on our long-standing commitment to provide best-in-class midstream services as we continue to grow in support of our producers.”