Mitchell Energy & Development Corp., The Woodlands, Tex., and partner Union Pacific Resources Company (UPR), Fort Worth, have completed a gas gathering system and treating plant in the Austin chalk trend of southern Grimes and Washington counties, Southeast Texas.
The $37 million gathering system and treating facility will add 360 MMcfd of throughput capacity to the companies' joint venture system, more than doubling the system's current capacity of 280 MMcfd.
The expansion will handle increasing lean gas production in the Austin chalk area. The new, 44 mile gathering system will accommodate all of UPR's production in the two counties, as well as provide significant capacity for other producers.
The Mitchell-UPR Austin chalk joint venture at present is gathering 220 MMcfd of rich gas, which requires processing and minimal treatment before shipment to market. The new gathering system is flowing about 115 MMcfd of lean gas, which is typically marketed unprocessed but requires treatment to remove carbon dioxide.
UPR holds a 55% interest in the venture; Mitchell 45%. Mitchell will operate the gathering system and treating plant.
Connections at the tailgate of the treating plant afford access to Lone Star Pipeline Co., Tejas Gas Pipeline Co., and Aquila Southwest Pipeline Corp. systems.
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