Marathon signs processing deal for Piceance production

By OGJ editors
HOUSTON, Dec. 7 -- Marathon Oil Co. is the latest in a slew of major oil and gas producers that have entered into long-term agreements with Enterprise Gas Processing LLC for the gathering, treating, processing, and compression of natural gas produced in the Piceance basin of northwest Colorado.

Enterprise will construct 50 miles of gathering lines to connect Marathon's multiwell drilling sites to the partnership's 48-mile, 36-in. Piceance Creek Gathering System (PCGS) for delivery to Enterprise's Meeker processing complex. Gas production is expected to peak at 180 MMcfd.

The Meeker complex, which was placed into service in October, is designed to process up to 750 MMcfd of gas and has the capability to extract as much as 35,000 b/d of natural gas liquids (NGL). Phase II of the Meeker complex, which will double the facility's capacity to 1.5 bcfd of gas and 70,000 b/d of NGL, is expected to begin operations in summer 2008 (OGJ Online, Nov. 15, 2007).

In addition to gathering pipelines, Enterprise also will build a compressor station to deliver gas into the PCGS. The station, 25 miles south of the Meeker complex in Rio Blanco County, Colo., will provide 22,000 hp of compression, as well as condensate handling and natural gas dehydration facilities.

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