By OGJ Online
HOUSTON, Jan. 9 -- Enterprise Gas Processing LLC reported it will buy Piceance Creek Pipeline LLC from EnCana Oil & Gas (USA) Inc. for an undisclosed sum.
The assets comprise a 48-mile, 36-in. gas-gathering pipeline in the Piceance basin of northwestern Colorado. EnCana will sign a long-term, fixed-fee gathering contract and dedicate some production to the system.
The 1.6 bcfd capacity Piceance Creek Gathering System (PCGS) is expected to be placed into service this month with initial volumes of 500 MMcfd of gas, and volumes are expected to ramp up to 625 MMcfd by yearend.
PCGS extends from a connection with EnCana's 32-mile, 24-in. Great Divide Gathering System near Parachute, Colo., northward to Enterprise's 1.5 bcfd capacity Meeker gas treating and processing complex, which is under construction.
Connectivity with the Great Divide system will provide PCGS with access to production in the southern portion of Piceance basin, including production from EnCana's Mamm Creek field.
Phase 1 of the Meeker complex, schedule for a mid-2007 start up, will be capable of treating and cryogenically processing as much as 750 MMcfd of gas and extracting 35,000 b/d of natural gas liquids.
Phase 2, slated for completion in mid-2008, will expand capacity of the Meeker facility to 1.5 bcfd and 70,000 b/d of NGLs.
