Salt Creek Plans 300 MMcfd Permian Gas Plant Expansion

MONTREAL (Oil Monster): Salt Creek Midstream LLC has ordered long-lead equipment for a proposed fourth cryogenic natural gas processing plant at its Pecos Processing Complex in Reeves County, Texas. The expansion could add up to 300 million cubic feet per day (MMcfd) of capacity, bringing the company's installed processing capacity to as much as 900 MMcfd.

According to the company's November 11, 2026 announcement, a final investment decision on Pecos IV is expected by year-end 2026. If approved, the facility is targeted to enter service in the second half of 2028.

Pecos IV Expansion Responds to Rising Gas Volumes

Salt Creek's existing processing system has approximately 600 MMcfd of capacity, which the company expects to reach full utilization in the first half of 2027.

The Pecos site has room for further expansion to 1.2 billion cubic feet per day (Bcf/d), and Salt Creek has secured grid power to support that potential development.

To manage customer growth before new processing capacity enters service, Salt Creek has arranged third-party processing capacity through strategic offloading contracts, expected to become operational by the end of the first quarter of 2027.

Also Read: Brazos Midstream Plans New Gas Plant to Expand Midland Basin Capacity

Pipeline and Compression Investments Support Growth

Salt Creek has secured nearly 300,000 dedicated acres across eight core Delaware Basin counties, supported by more than 20 customers.

The company expects approximately 75% of its 2027 throughput to come from investment-grade counterparties, with contractual minimum-volume commitments supporting about 35% of projected volumes.

Its dedicated acreage includes approximately 40,000 acres in the Woodford fairway, where gas volumes are projected to exceed 200 MMcfd by year-end 2027.

Salt Creek has also completed a 13-mile, 20-inch pipeline loop, increasing available high-pressure gathering capacity along its eastern system by as much as 40%.

Additional investments planned for 2027 include 80 MMcfd of compression capacity and 20,000 horsepower of low-pressure gathering compression.

OilMonster Industry Edge | Managing Capacity Before Expansion

Salt Creek expects customer volumes to fully utilize its existing processing capacity in the first half of 2027, while Pecos IV would not enter service until the second half of 2028.

Its interim processing agreements are therefore an important part of the growth plan, providing additional capacity before the proposed plant is operational. The year-end investment decision will determine the expansion's final size and commitment.

Salt Creek Completes $980 Million Refinancing

Salt Creek has completed a $980 million first-lien term loan due in 2031, using the proceeds to repay first- and second-lien debt previously due in 2027.

The company also established a $35 million super-priority revolving credit facility due in 2031, undrawn at closing and featuring a $40 million accordion option.

Enbridge Completes Crude Gathering Acquisition

Separately, Enbridge Inc. completed its acquisition of Salt Creek's crude oil gathering business on October 9, 2026. The transaction was initially announced in August at a price of approximately US$600 million.

The acquired assets comprise the Orla and Wink North gathering systems and a 50% interest in Delaware Crossing. Together, the systems include approximately 500 miles of Delaware Basin infrastructure, with throughput capacity of 420,000 barrels per day and storage capacity of 350,000 barrels.

Enbridge reported final cash consideration of approximately US$625 million in its financial disclosures.

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Salt Creek Midstream Company Profile

Courtesy: Oil & Gas Journal.

Additional verification: Salt Creek Midstream, November 11, 2026; Enbridge, November 6, 2026.