Lubbock bit, and Palisade went a-courting for financing.

With agreement in hand, Palisade approached private equity firm Macquarie Capital last October to fund the large-scale reclaimed water system. The metrics of the “ground-breaking” project looked inviting. The company’s only competitors in the area pump groundwater. The Palisade Pipeline would conserve an estimated 3 billion gallons of fresh water a year, or 73 billion gallons over the life of the project, in a time of hurried environmental goals. Construction would take a short six months. The company team included veteran midstreamers in government regulations, energy infrastructure, and large-scale engineering.

Boom. Funding secured. Get busy.

And that’s exactly what Palisade set off to do with its eyes fixed on Permian oil and gas production. But after speaking at a February water in energy conference, the company’s vice president of operations recognized a broader customer universe existed for the proposed project; namely, industries and agriculture that have traditionally relied on fresh water for their operations but now are implementing sustainability goals and need help meeting them. Production slowdown in the Permian soon followed that conference, which also amplified the need for Palisade to diversify its customer base, which it has. Palisade now is forging ahead with its plans to build an environmentally superior water pipeline solution to the Permian and expects completion of its system by late next year.

Was this article helpful? Let us know what you think.

​