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
The ongoing development of shale gas resources in the US has spurred infrastructure construction for both natural gas processing capacity and LNG export terminals.
Russian natural gas monopoly Gazprom is strengthening its presence in the gas market of the Middle East through the planned construction of an 11-metric-MMtpy–12-metric-MMtpy LNG plant in Iran.
ADIP ULTRA: ADIP-X Reimagined
View on Demand
Shell Global Solutions International BV (Shell) is launching the improved process technology ADIP ULTRA, for cost-effective removal of CO2 down to <50ppmv. The ADIP ULTRA process is applicable in gas plants, LNG, pre-NGL, refinery HMUs and gasification syngas.
•Discover how looking back at decades of ADIP and ADIP-X operational experience has led to the cost effective ADIP ULTRA process
•Understand how Shell’s new absorption column internals can further enhance process performance
•Learn how Shell is a reliable partner of choice who helps you get the most out of your unit
•An opportunity to ask questions to Shell’s technical experts
May 9, 2017 9am UTC
View on Demand