Penn Virginia buys Granite Wash gas plant, gathering
Warren R. True
Chief Technology Editor-LNG/Gas Processing
HOUSTON, June 10 -- Penn Virginia Resource Partners LP, Radnor, Pa., paid $11.4 million for a natural gas gathering system and processing plant in the Texas Panhandle. The company’s announcement did not name the seller, nor did the company respond to a request to identify it.
The Antelope Hills assets consist of 20 MMcfd of cryogenic processing and about 15 miles of gas gathering in Lipscomb and Hemphill counties. These assets, which are currently connected to PVR's existing Panhandle systems, will serve producers in the Granite Wash.
This acquisition is part of a larger PVR Panhandle systems expansion that the company said will involve expansion of the Antelope Hills processing plant to 70 MMcfd, as well as additional gathering system “enhancement and optimization.”
The planned expansion will involve an additional investment of about $35 million over the next 12 months, said the company announcement, and will increase PVR's Panhandle total processing capacity to 330 MMcfd.
William H. Shea Jr., PVR chief executive officer, said, "We currently anticipate the Antelope Hills plant expansion to be completed and in operation in the second quarter of 2012."
Penn Virginia Resource Partners owns more than 800 million tons of proven coal reserves in northern and central Appalachia and the Illinois and San Juan basins. Its midstream natural gas assets are principally in Texas, Oklahoma, and Pennsylvania and include more than 4,200 miles of gas gathering pipelines and seven processing systems with about 420 MMcfd of capacity.
Contact Warren R. True at [email protected].
