A Houston oilfield water management company has started operations to recycle wastewater from oil and natural gas sites in the Permian Basin of West Texas and southeastern New Mexico.
Solar Water Midstream LLC announced on Tuesday that the company has Pecos Star System has started recycling operations in Eddy and Lea counties in New Mexico and Culberson and Loving counties in Texas.
The pipeline system moves wastewater from oil and natural gas operations to recycling centers where it is treated and sent back to be used in drilling and hydraulic fracturing operations.
"Our large-diameter produced water pipeline system provides reliable, low-cost water disposal capacity to our customers while enabling Solaris Water to aggregate significant produced water volumes for recycling," Solaris Water Chief Operating and Commercial Officer Amanda Brock said in a statement. "We provide significant cost savings to our customers and reduce their reliance on brackish and fresh water. Our customers understand the benefits of having shared infrastructure in place to provide redundancy and lower costs."
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Launched in November 2015 and financially backed by the private equity firm Trilantic Capital Partners North America, Solaris Water Midstream sources and delivers freshwater to drilling operations and moves and recycles oilfield wastewater.
The company reports having 16 current customers already either connected or in the process of connecting to its Pecos Star System.
A subsidiary of Marathon Oil Company signed a long-term contract for water services in a 369,000-acre area of Lea County, New Mexico that will allow for a 125-mile expansion of the Pecos Star pipeline network.
Once the construction for the expansion is complete, the Pecos Star System will include more than 300 miles of large diameter permanent pipelines and more than 200 miles of temporary pipelines.
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The company also owns and operates saltwater disposal wells, or SWDs, which are used to dispose of water that cannot be treated or recycled.
"Solaris Water systems are large-scale, built-for-purpose infrastructure networks that add tremendous value to our customers as they increase their activity levels in the Delaware Basin," said Solaris Water Midstream CEO Bill Zartler said in a statement. "We believe our unique growing footprint in prime acreage in the Delaware, with an extensive pipeline system connected to multiple SWDs, ponds and recycling facilities, provides the redundancy, flexibility and value our customers want."