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Atlas Pipeline brings Woodford gas processing online

Atlas Pipeline Partners LP has brought online its 60 MMcfd cryogenic gas processing plant at Velma, Okla., bringing the site’s total processing capacity to 160 MMcfd. The expansion supports Atlas Pipeline’s long-term, fee-based agreement with XTO Energy Inc., a subsidiary of ExxonMobil Corp., to provide gas gathering and processing services for up to an incremental 60 MMcfd from the Woodford shale.

Increased production near Velma has the expansion operating at 50% of capacity, ahead of Atlas Pipeline’s previously announced expectations. The company plans additional compression work next week, shortly after which it expects the new plant to reach 75% of capacity.

XTO bought Woodford production assets from Chesapeake Energy Corp. earlier this year (OGJ Online, Apr. 10, 2012). The properties included 25 MMcfed of net production at the time of the sale.

Atlas Pipeline expects a 200 MMcfd processing expansion on its WestOK system in northern Oklahoma and southern Kansas to be online next month. Drilling activity in the Mississippi Lime has continued to increase behind the system and volumes continue to grow in excess of current processing capacity, Atlas said. The expansion will bring total WestOK processing capacity to 458 MMcfd.

Atlas Pipeline also recently completed the purchase of gathering systems in Barber and Harper counties, Kan., which include about 60 miles of gathering pipelines and associated rights-of-way. These gathering systems are already connected to the WestOK system and will allow Atlas to further expand into these areas of Kansas, the company said. The WestOK system now includes roughly 5,100 miles of active gathering pipe and is moving about 340 MMcfd of gas.

Atlas Pipeline also is purchasing the Mansfield gathering system in the Barnett shale in Tarrant County, Tex. The system consists of 19 miles of gathering pipeline used to gather production newly acquired by affiliate Atlas Resources Partners LP. It currently moves about 26 MMcfd under a fee-based arrangement.

Contact Christopher E. Smith at chriss@ogjonline.com.


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