Southern Union Co., Houston, will spend $235 million to build the Red Bluff project, a 200-MMcfd gas processing plant and associated gathering, compression, and treating facilities, through its midstream unit, Southern Union Gas Services.
The project is part of ongoing midstream expansion in response to anticipated production from the Avalon shale, said the company’s announcement. The new facilities will enable SUGS to handle production from existing and future development in the Avalon, Bone Spring, and Wolfcamp plays of West Texas and southeast New Mexico.
As part of the project, SUGS will build about 60 miles of pipeline to deliver up to 20,000 b/d of NGLs into Lone Star NGL’s planned Permian-to-Mt. Belvieu pipeline expansion, under a 15-year firm agreement (OGJ Online, June 24, 2011). Southern Union expects the project to be completed in mid-2013.
Southern Union owns and operates more than 20,000 miles of gathering and transportation pipelines as well as an LNG import terminal at Lake Charles, La.