Trace Midstream Expands Northern Delaware Basin Operations with New Apollo Gas Processing Facility
Trace Midstream Partners II, LLC (Trace), a portfolio company backed by Quantum Capital Group, has announced plans to significantly expand its natural gas infrastructure network in the Northern Delaware Basin through the construction of the Apollo Gas Plant. The new facility, designed to process 250 million cubic feet of natural gas per day (MMcf/d), will be located in Eddy County, New Mexico, and is expected to become operational during the fourth quarter of 2027.
The announcement marks a major milestone in Trace’s growth strategy and reflects the continued expansion of oil and gas activity across the Delaware Basin, one of North America’s most productive energy regions. In addition to the processing plant, Trace will develop approximately 36 miles of gathering pipelines and construct two new compressor stations to support the transportation and handling of increasing natural gas volumes from producers operating in the area.
The project has already secured support through multiple long-term agreements with both existing and new customers. These contracts provide a strong commercial foundation for the development and demonstrate growing demand for reliable midstream infrastructure capable of handling rising production levels in the basin.
Creating an Integrated Natural Gas Solution
The Apollo Gas Plant represents a significant evolution in Trace’s business model. Historically focused on gathering, compression, and transportation services, the company is now extending its capabilities into natural gas processing. This expansion allows Trace to provide producers with a comprehensive suite of services covering the entire natural gas midstream value chain.
Once completed, the integrated system will enable natural gas producers in the Northern Delaware Basin to access a single infrastructure network that manages natural gas from the wellhead through gathering, compression, transportation, and processing. Such an integrated approach can simplify operations for producers, reduce logistical challenges, and improve reliability by minimizing the need to coordinate with multiple service providers.
According to Trace leadership, the Apollo Gas Plant will serve as a cornerstone asset that strengthens the company’s position as a leading midstream provider in the region. The facility will not only increase processing capacity but also create additional flexibility for customers seeking dependable market access for their natural gas production.
Supporting Rapid Basin Growth
The Northern Delaware Basin continues to experience strong development activity as producers capitalize on the region’s substantial hydrocarbon resources. Growing production volumes have increased demand for infrastructure capable of safely and efficiently moving natural gas from production sites to downstream markets.
Trace Chief Executive Officer Josh Weber emphasized the strategic importance of the new project and its role in meeting customer needs as basin activity accelerates.
He noted that the Apollo Gas Plant represents a transformational addition to the Trace system, expanding the company’s service offerings across the natural gas value chain. By integrating processing services with existing gathering, compression, and transportation assets, Trace aims to provide producers with a reliable and streamlined solution for managing their natural gas production.
Weber further highlighted the company’s commitment to continued infrastructure investment in response to customer growth. As drilling and production activities expand across the Northern Delaware Basin, the need for additional midstream capacity becomes increasingly critical. The Apollo project is intended to address that demand while ensuring producers have access to dependable infrastructure that can support future development plans.
Significant Infrastructure Investment
The Apollo Gas Plant is part of a broader period of sustained investment by Trace throughout its operating footprint. Over the past several years, the company has steadily expanded its infrastructure network to accommodate growing production and strengthen connectivity across the basin.
Upon completion of the Apollo project and associated facilities, Trace’s system will include more than 200 miles of pipeline infrastructure. The network will also feature 14 compressor stations equipped with more than 125,000 horsepower of compression capacity.
These assets collectively form a substantial midstream platform designed to handle large volumes of natural gas while maintaining operational reliability and flexibility. The expansion underscores the company’s long-term confidence in the Northern Delaware Basin and its expectation that production growth will continue for years to come.
The addition of the Apollo facility will significantly enhance the overall scale and capability of the Trace system. It will also improve the company’s ability to accommodate increasing customer demand while providing additional operational efficiencies across its network.
Strengthening Market Access
Natural gas processing plays a crucial role in preparing raw natural gas for transportation and sale. Processing facilities remove impurities and separate valuable natural gas liquids from the gas stream, ensuring that products meet pipeline specifications and market requirements.
By adding processing capacity to its infrastructure portfolio, Trace is positioning itself to offer greater value to producers. Rather than relying on third-party processing facilities, customers connected to the Trace network will have access to an integrated system capable of managing multiple stages of the midstream process.
This approach can improve efficiency, reduce transportation bottlenecks, and create more predictable service for producers operating in the region. It also enhances Trace’s ability to provide end-to-end solutions that connect production areas with downstream markets.
The Apollo Gas Plant is expected to become a key component of that strategy, enabling the company to deliver enhanced services while supporting long-term production growth throughout the basin.
Building One of the Region’s Largest New Midstream Systems
What began as a focused gathering and compression operation has evolved into one of the largest newly developed natural gas midstream systems in the Northern Delaware Basin. Through a series of infrastructure investments and strategic expansions, Trace has steadily increased its operational footprint and service capabilities.
Today, the company’s network is capable of gathering and transporting more than 800 MMcf/d of natural gas. The addition of the Apollo Gas Plant will further strengthen that capability and create a fully integrated platform extending from the wellhead to downstream markets.
The project reflects broader industry trends in which midstream operators are investing in larger, more connected infrastructure systems to support increasing production and evolving customer requirements. Integrated networks provide producers with greater certainty, operational efficiency, and access to critical services needed to bring natural gas to market.
As construction moves forward, the Apollo Gas Plant is expected to play an important role in supporting continued development across the Northern Delaware Basin. For Trace, the project represents both a significant expansion of its infrastructure portfolio and a strategic step toward becoming a comprehensive midstream service provider capable of delivering reliable, long-term solutions for natural gas producers throughout the region.
With commissioning targeted for late 2027, the Apollo Gas Plant is poised to become a central asset in Trace’s growing network and a key contributor to the future growth of the Northern Delaware Basin energy sector.
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