Istmo Energy Reaches Final Investment Decision on Pecos Fractionation Project

The Pecos Fractionation Project is the next phase of Istmo’s integrated NGL processing, logistics and energy infrastructure platform in the Permian Basin. By co-locating a 25,000 BPD NGL fractionator with a 10,000 BPD condensate stabilizer, Istmo’s Pecos campus will process, stabilize and dispatch multiple hydrocarbon streams from a single inland location.

The fractionator is designed to produce specification-grade ethane, propane, butanes and natural gasoline. It will also create a significant on-site ethane stream that can be sold to downstream markets or used as fuel for future behind-the-meter power generation at the campus — a direct link between Istmo’s midstream assets and the broader energy needs of the Pecos platform.

The stabilizer will process off-spec NGLs trucked into the facility into stabilized C6+ product for in-basin markets.

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  C2 Ethane

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  C3 Propane

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  C4 Butanes

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  C5 Natural gasoline

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  C6+ Stabilized condensate

Continued growth in Permian natural gas production is increasing the volume of NGLs that require fractionation, transportation and access to downstream markets.

The Pecos project offers a logistically advantaged outlet for NGL and condensate volumes in the western Permian — an alternative pathway to customers in the basin and across the West, beyond the traditional Gulf Coast fractionation and logistics corridors.

Why it matters to producers & marketers

1. 01A new inland outlet for Y-grade and trucked NGLs, close to Permian supply
2. 02Fractionation, stabilization, and truck and rail loading on one site
3. 03Multi-product market access across the C2–C6+ slate, including structurally short Southwest, West Coast and Mexican markets

Istmo’s Pecos rail terminal connects directly to the Union Pacific network. From Pecos, rail can reach markets across West Texas, Arizona and Southern California, as well as key border gateways serving northern and northwestern Mexico — a differentiated westward pathway for Permian NGL products that pairs inland processing capacity with direct rail access.

• Pecos Fractionation Project — Reeves County, TX
• Union Pacific rail + truck — Arizona / Southern California
• Mexico rail and truck corridors — Juárez, Nogales and Northwest Mexico

Istmo is also developing commercial relationships with downstream customers and logistics counterparties across these markets to support long-term product placement from the Pecos platform.

Istmo is advancing the broader Pecos platform to meet the large-scale, high-reliability energy requirements of future digital infrastructure. Istmo has partnered with Prometheus Hyperscale on development of the Pecos data center campus, with Istmo providing the fuel and energy infrastructure for resilient behind-the-meter power generation.

Central to the strategy is pairing pipeline natural gas with an on-site ethane fuel stream produced by Istmo’s own fractionation plant. Rather than relying on a single pipeline fuel source, the campus energy architecture is being designed around multiple complementary fuel and power pathways.

Locally produced ethane connects Istmo’s NGL processing infrastructure directly to the campus power system — diversifying fuel supply, reducing dependence on pipeline gas alone and adding a layer of resilience for mission-critical demand. Together, fuel diversity, on-site storage and redundant generation are intended to reduce exposure to any single infrastructure failure.

1. 01 Pipeline natural gas supply
2. 02 On-site ethane production
3. 03 Propane and liquid fuel storage
4. 04 Redundant on-site power generation
5. 05 Battery energy storage (BESS) and utility infrastructure

Hyperscale data center developmentPipeline gas + on-site ethane + propane backup + fuel storage + BESS + future grid optionality — designed to reduce pipeline dependency and single-point-of-failure exposure

Istmo has received support for the project from Reeves County and the Town of Pecos City, and is working with local stakeholders to support long-term economic development tied to the Pecos campus.

Direct operating jobs

~30 expected once the project is operational

Indirect jobs

~70 supported across the local economy

STEM & workforce

Support for workforce development and STEM education for students in the region

Housing

Plans for additional housing to support population and employment growth in Pecos

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