CenterPoint Energy Field Services LLC, Houston, has signed two agreements to buy gathering and processing assets located mainly in northeast Texas.
The first agreement covers a $275 million acquisition of gathering and processing owned by Prism Gas Systems I LP, Bedford, Tex. a wholly owned subsidiary of Martin Midstream Partners LP, Houston. It also includes other gathering and processing from Martin Midstream’s natural gas services segment.
The assets under this first agreement include Prism’s 50% interest in Waskom Gas Processing Co. Waskom, Tex. A CenterPoint Energy subsidiary currently owns the other 50% interest in Waskom.
In the second transaction, CenterPoint Energy entered into a 15-year agreement with Encana Oil & Gas (USA) Inc., a subsidiary of Encana Corp., to gather and treat gas production from Amoruso and Hilltop fields in Robertson and Leon counties in East Texas. This agreement includes volume commitments and acreage dedication, according to CenterPoint Energy’s announcement.
Along with the gathering agreement, CenterPoint purchased Encana’s 139-mile Amoruso gathering systems for about $89 million. Amoruso currently has more than 200 MMcfd of gas throughput primarily from Deep Bossier and Cotton Valley Lime formations.
The assets to be acquired from Prism in northeast Texas include:
• Prism’s 50% interest in Waskom, including a 320-MMcfd processing plant, a 14,500-b/d fractionation plant, and the 75-MMcfd Harrison gathering system.
• The Woodlawn plant and a 30 MMcfd, 125-mile gathering and processing system.
• The McLeod, Hallsville, and Darco gathering systems that, combined, gather and treat more than 40 MMcfd and sit near the other assets to be acquired in East Texas and northwest Louisiana.
Under terms of the Encana gathering agreement, CenterPoint Energy will expand the Amoruso systems to gather and treat more gas as necessary to support Encana’s future production within the dedicated area.