Infrastructure projects are normally low-key and do not typically garner extensive media coverage. However, in areas of operationally critical water management, even the simple announcement of a new or expanding project can generate significant interest and alter operator expectations. The impact of new infrastructure and expansion can make or break the future of future projects.
Quietly significant: A milestone that signals real momentum
On February 23, 2026, WaterBridge Infrastructure announced the initiation of the open season for Speedway Phase II, the second major component of the company’s long-haul produced-water pipeline system expansion. The open season will run until April 20, 2026, marking the official commencement of the commercial and construction phases of the project.
The expanded pipeline system will move produced water from Eddy County, NM, and Lea County, NM, to long-term pore-space storage facilities in the Central Basin Platform, a project being undertaken by affiliate LandBridge Company LLC.
The expansion of the pipeline system is a direct result of the final investment decision (made in September 2025) for the initial Speedway Pipeline System.
A distinguishing feature of Phase II, as opposed to previous expansion of the pipeline system, is that it is a response to increased demand, rather than simply a reaction to meet the needs of the initial system. Specifically, the Phase II expansion is designed to provide transportation of produced water to new customers in addition to those initially served by the pipeline system.
Capacity expansion and regional significance
It is anticipated that the Speedway Phase II pipeline system will provide up to 500,000 barrels per day of additional throughput, effectively doubling the total capacity of the system to 1 million barrels per day when combined with the initial pipeline system.
As stated by WaterBridge, the expansion represents a significant increase in available throughput due to “the rapidly escalating drilling activity and the corresponding pressure to develop responsible produced water handling solutions” in the Northern Delaware Basin. The project demonstrates that the ability to provide infrastructure to support large-scale development in the basin will have a positive impact on the long-term viability of the region.
Operators are relying on larger-scale takeaway systems to minimize costs associated with transporting produced water, while also enhancing their operational efficiencies and environmental compliance efforts.
The start of construction begins: What happens moving forward?
Although the open season is a commercial process, it marks the beginning of the physical construction of the Speedway Phase II pipeline system. According to WaterBridge, the open season signifies that the groundwork for the project is underway, and the timeline for completion of the project will be determined based on shipper commitment levels.
The launch of the Phase II expansion, in conjunction with the ongoing development of Phase I, clearly indicates that WaterBridge is aggressively pursuing expansion of basin-wide infrastructure. In doing so, the company is demonstrating its confidence in continued regional growth, as well as the escalating water-management needs of operators in the area that require long-distance takeaway capacity to accommodate their needs.
Shippers have an opportunity to participate in what is likely to become a key element of the future operational flexibility of operators in the area through the acquisition of takeaway capacity provided by the Speedway Phase II pipeline system. The initiation of the open season for the Speedway Phase II pipeline system is a significant milestone in the expansion of WaterBridge’s produced-water network. As development increases throughout the Northern Delaware Basin, the Speedway Phase II expansion project will have a central role in how operators manage water movement. Similar to other large pipeline systems, it will establish new feasibility parameters in terms of regional water movement.
