Palisade Pipeline secures financing for water pipeline project

US-based water infrastructure projects developer Palisade Pipeline has completed a development financing with Macquarie Capital for construction of a high capacity water pipeline project.

Palisade will use the development capital to build out the infrastructure that is required for the pipeline.

The pipeline will be used for supplying non-potable, sustainable reclaimed water to Permian Basin from the City of Lubbock in Texas.

Palisade Pipeline president Phillip Laughlin said: “We are excited about the opportunity to preserve groundwater in the Permian Basin while providing a source of revenue to the City of Lubbock. We appreciate Macquarie Capital’s support for this groundbreaking project.”

Once completed, the pipeline project will be used to supply water to the oil and gas industry in Texas and New Mexico.

Additionally, it will have the capacity to meet the water demands of other industrial users and applications.

As a principal investing arm of Macquarie Group, Macquarie Capital will also serve as the financial advisor to Palisade in the financing of the pipeline.

Macquarie Capital Americas Energy Principal Investments head Nicholas Gole said: “We are pleased to partner with Palisade in developing this innovative project. This pipeline will provide a sustainable source of quality water to an area with increasing demand and limited water supply.”

Macquarie is a diversified financial group, which offers its clients finance, banking, asset management and capital solutions across debt, equity and commodities.

In June this year, the Lubbock City Council approved a letter of intent to sell up to six million gallons of non-potable reclaimed water to Palisade on a daily basis.