Midstream - Pipelines

Crosstex Energy Adds New Permian Pipeline

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   |    Friday,February 07,2014

Crosstex Energy, L.P.  announced that the Partnership is continuing to expand its gas gathering and processing capabilities in the Permian Basin through a new long term, fee-based agreement with a major oil and gas producer in the region. This agreement builds upon the approximately $210 million in investments that Crosstex has already made in the Permian Basin to take advantage of growing production in the region, including its joint venture with Apache Corporation, the Mesquite fractionator and the Bearkat gathering and processing complex.

In conjunction with the agreement, the Partnership is constructing a new 35-mile, 12-inch diameter high-pressure pipeline that will provide critical gathering capacity for the previously announced Bearkat natural gas processing complex. The incremental investment for the new pipeline extension project is expected to be approximately $70 million.

The new-build pipeline, located in the eastern portion of the Wolfberry oil play, will originate at the Partnership’s Bearkat gas processing facility, currently under construction in Glasscock County. The pipeline will have a capacity of approximately 100 million cubic feet per day and will provide gas takeaway solutions for constrained producer customers in Howard, Martin and Glasscock counties. Right-of-way acquisition is underway and the pipeline is expected to be operational in the second half of 2014.

“The Permian Basin has been an important area of growth for Crosstex and this arrangement strategically expands our footprint in West Texas. Looking to the future as we work to complete our transaction with Devon Energy to create EnLink Midstream, we are confident that having a solid and scalable gathering and processing footprint in the Permian will be an integral part of our success,” said Barry E. Davis, Crosstex President and Chief Executive Officer.