Permian Water Project Secures Financing
A pipeline project that would transport non-potable reclaimed water from Lubbock, Texas, to industrial customers in the Permian Basin has cleared an important hurdle.
Palisade Pipeline LLC reported Tuesday that it has closed development financing with Macquarie Capital to construct the pipeline, which would carry reclaimed water purchased from Lubbock’s Southeast Water Reclamation Plant to oil and gas industry users in Texas and New Mexico.
“We are excited about the opportunity to preserve groundwater in the Permian Basin while providing a source of revenue to the City of Lubbock,” Phillip Laughlin, Palisade’s president, said in a written statement emailed to Rigzone. “We appreciate Macquarie Capital’s support of this groundbreaking project.”
In addition to providing money for the project, Macquarie Capital will act as Palisade’s sole financial advisor in the financing of the pipeline. The Lubbock City Council approved a letter of intent in June of this year to sell Palisade up to 6 million gallons per day of non-potable reclaimed water from its treatment facility.
“We are pleased to partner with Palisade in developing this innovative project,” commented Nicholas Gole, Head of Americas Energy Principal Investments with Macquarie Capital. “This pipeline will provide a sustainable source of quality water to an area with increasing demand and limited water supply.”
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