Vaquero Midstream has nearly finished constructing a pipeline and processing expansion in the southern Delaware Basin. The project is one of a long list of midstream investments planned in the Delaware to keep up with producer growth.
In April 2025, Dallas-based Vaquero announced a project to expand processing and gas gathering from the state line area to Waha. The project includes a new 70-mile, 24-inch high-pressure pipeline loop that doubles transport capacity from 400 to 800 MMcf/d. The company is also adding a 200 MMcf/d cryogenic plant at its Waha processing complex.
A Vaquero executive told East Daley that it completed the pipe loop in January and expects to start up the new plant in March. The project will extend G&P services on the northern end of the Vaquero G&P system in Loving, Ward and Winkler counties in Texas.
Vaquero’s project is part of a wave of new gas infrastructure planned in the Delaware. East Daley is tracking over 2.3 Bcf/d of new processing planned through 2027 in the basin (see table at right).
The growth is backed by two macro forces. First, Permian producers are increasingly migrating drilling and development work to the Delaware. This leads to a natural tailwind for business.
Second, Delaware hydrocarbon flow has higher gas-to-oil ratios than the Midland, creating sustained demand for G&P services. Midstream companies are expanding infrastructure to manage rising gas volumes and capture additional value from NGLs.
East Daley tracks the Vaquero system in Energy Data Studio, monitoring volumes, rig activity and producer exposure over time (see dashboard above). The system connects to a diverse group of operators, including EOG Resources (EOG) and Coterra Energy (CTRA), among ~40 producers tied into the system.
On the NGL side of the business, Vaquero is well positioned to benefit from NGL recovery. Its G&P system connects to four major NGL pipelines: Lone Star, Chaparral, Targa and EPIC. The takeaway options allow the company to monetize liquids more efficiently, providing flexibility to route volumes to multiple downstream markets. – Sam Chen Tickers: CTRA, EOG, TRGP.
Download Part II of East Daley’s Permian Basin White Paper Series
The Permian Basin’s next big buildout is already taking shape, but this time the driver isn’t crude oil. In The Permian Basin at a Crossroads: Why This Pipeline Boom is Different, East Daley Analytics’ latest white paper reveals how gas demand from AI data centers, utilities and LNG exports is rewriting the midstream playbook in the leading US basin. Over 10 Bcf/d of new capacity and $12 billion in investments are reshaping flows, turning the Permian into a gas powerhouse even as rigs decline. Read Part II: Why This Pipeline Boom is Different
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