Trace Midstream Partners II plans to construct the Apollo Gas Plant, a 250- MMft3d cryogenic natural gas processing facility in Eddy County, New Mexico (U.S.), expanding its footprint in the Northern Delaware Basin and marking the company's entry into natural gas processing.

The Apollo Gas Plant will be supported by 36 mi of new gathering pipelines and two compressor stations designed to connect production volumes to the new facility. Trace said the project is backed by multiple long-term agreements with both new and existing customers and is expected to enter service in the fourth quarter of 2027.

The project expands Trace's existing gathering, compression and transportation network across Eddy and Lea counties in southeastern New Mexico. Once completed, the company said producers will have access to an integrated system spanning gathering, compression, transportation and processing services.

"The Apollo Gas Plant is a transformational addition to the Trace System," CEO Josh Weber said. "By adding processing to our existing gathering, compression and transportation infrastructure, we can offer producers a single and reliable solution for their natural gas."

Trace said producer activity in the Northern Delaware Basin continues to drive demand for additional midstream infrastructure. The company expects the Apollo facility and related assets to support future production growth across the region.

Following completion of the project, Trace said it will operate more than 200 mi of pipelines, 14 compressor stations and over 125,000 horsepower of compression. The system will have the capacity to gather and transport more than 800 MMft3d of natural gas across the Northern Delaware Basin.