Crosstex adding Permian basin gas gathering capacity
Crosstex Energy is building a 35-mile, 12-in. OD high-pressure natural gas pipeline, providing Permian basin gathering capacity for its previously announced 60-MMcfd Bearkat gas processing complex in Glasscock County, Tex. (OGJ Online, Oct. 28, 2013). The pipeline is underpinned by a long-term, fee-based agreement with a major oil and gas producer in the region.
The 100-MMcfd pipeline, in the eastern portion of the Wolfberry oil play, will provide gas takeaway solutions for constrained producer customers in Howard, Martin, and Glasscock counties. Right-of-way acquisition is under way and Crosstex expects the pipeline to begin operations in this year’s second half.
Occidental Petroleum Corp. last year planned to have an average of 25-27 rigs active in the Permian basin, with one third of that program devoted to Wolfberry (OGJ Online, Feb. 1, 2013).
In addition to this project and the Bearkat processing site, Crosstex has made recent Permian basin investments in a joint venture with Apache Corp. (OGJ Online, July 12, 2011) and the Mesquite NGL terminal and 7,500-b/d fractionator. NGLs move by train from Mesquite to Crosstex’s Eunice, La., site.
The new pipeline will cost about $70 million.
Christopher E. Smith | Editor in Chief
Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.