Layne Christensen Completes Water Pipeline Construction

Layne Christensen Company has completed construction of its high-capacity water pipeline and infrastructure system serving energy producers in the prolific Delaware Basin in West Texas.

The company’s new water infrastructure system is anchored by nearly 1,000 acres of water-producing land near Pecos, and includes:

• A 22-inch diameter water pipeline of more than 20 miles in length
• 750,000 barrels of storage through two lined, in-ground storage ponds near the water wells
• Associated pump stations
• An electronic automation system that will allow remote monitoring and control of all aspects of the system including storage levels, pipeline pressures, volume deliveries and water well production

“We are pleased with the early completion of this project, and have begun delivering water to customers,” Michael J. Caliel, President and Chief Executive Officer of Layne, said. “This infrastructure business is an expansion of our water-focused platform, which leverages our extensive experience to better serve the energy sector. We expect to see continuing demand growth for water in the energy sector, especially in the Delaware Basin, due to attractive producer economics, longer horizontal drilling lengths, and more use of water per foot of lateral length.”

The new infrastructure system has the ability to deliver water at multiple points along the pipeline route and also offers an initial production and delivery capacity of 100,000 barrels per day of non-potable water, with significant capacity to support further expansion from both additional water sources and delivery points.  Including land cost, the capital investment for the system was approximately $18 million.

 

 

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