San Mateo to expand Delaware basin gas processing capacity under new producer agreements

Oil & Gas Journal · 2026-11-02 00:00 UTC

The project adds about $25 million to San Mateo’s 2026 midstream capital budget, bringing it to $170-190 million, while total processing capacity is expected to exceed 1.3 bcfd...

San Mateo Midstream LLC plans to expand natural gas gathering and processing infrastructure in New Mexico's Delaware basin after signing two long-term agreements with a producer.

San Mateo Midstream, a joint venture of Matador Resources Co. (51%) and Five Point Infrastructure LLC (49%), said the agreements are expected to add long-term volumes across its gathering and processing system. With that and anticipated production growth from Matador, the company plans to expand its Marlan natural gas processing complex in Eddy County, NM, with a 300-MMcfd processing train and a new nitrogen rejection unit. The company also expects to construct about 20 miles of natural gas pipeline to connect newly dedicated acreage and a field treating facility for CO2 removal.

Subject to permitting, procurement, and construction activities, the Marlan expansion is targeted for completion by yearend 2028.

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