WPX forms JV to develop midstream assets in Permian basin
(Reuters) — US oil and gas producer WPX Energy Inc said it had agreed to form a joint venture with privately held Howard Energy Partners to develop oil gathering and natural gas processing infrastructure in the Permian basin.
The joint venture will complete the construction of a pipeline, already started by WPX, and develop a new natural gas processing plant, the company said.
The pipeline is designed to move about 125,000 bpd of oil, while the natural gas plant will have an initial capacity of 400 MMcfd.
WPX said it would receive $300 MM upfront in cash from Howard Energy.
The Permian basin, which straddles Texas and New Mexico, has been a hot spot of deal activity due to its low production costs that make it economical to drill there even when crude prices are depressed.
Reporting by Ahmed Farhatha in Bengaluru; Editing by Sai Sachin Ravikumar and Anil D'Silva
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At October’s HPI Forecast Breakfast for our sister publication, <i>Hydrocarbon Processing</i>, I shared <i>Gas Processing</i>’s forecast on change in the LNG industry.
In one of the toughest markets in the history of gas compression, we are challenged to deliver more with less.
The New LNG Imperative
The shale gas boom established the US as the world’s leading natural gas producer and is responsible for billions of dollars of investments in the US gas processing industry. Since 2012, the US has witnessed unprecedented growth in new gas processing capacity and infrastructure. This rise is due to greater production of domestic shale gas, which is providing cheap, available feedstock to fuel the domestic gas processing, LNG and petrochemical industries. New gas processing projects include the construction of billions of cubic feet per day of new cryogenic and gas processing capacity, NGL fractionators, multi-billion-dollar pipeline infrastructure projects, and the development of millions of tons per year of new LNG export terminal construction. Attend this webcast to hear from Lee Nichols, Editor/Associate Publisher, Hydrocarbon Processing, Scott Allgood, Director-Data Services, Energy Web Atlas and Peregrine Bush, Senior Cartographic Editor, Petroleum Economist as they discuss the future of LNG and the application of Energy Web Atlas, a web-based GIS platform which allows users to track real-time information for every LNG project.
November 29, 2017 10am CST
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