WILLIAMS TO STEP UP SAN JUAN GAS ACTIVITY

A unit of Williams Field Services Group, Tulsa, plans a program to increase system efficiencies and gas purchases in the San Juan basin of Northwest New Mexico. The program is in store for Williams' recently acquired Gas Co. of New Mexico (GCNM) gas gathering and processing assets in the region. Within days after receiving approval from the New Mexico Public Utility Commission, Williams and GCNM wrapped up the $155 million acquisition June 30. The trade included GCNM assets in the Permian basin of Southeast New Mexico. As expected, Williams sold acquired GCNM gas gathering, treating, and processing assets in Southeast New Mexico to GPM Gas Corp. the same day. The sale covered about 10% of the assets Williams acquired from GCNM. Now, Williams' remaining acquired assets in the San Juan basin include two gas processing plants near Bloomfield, N.M., with a total design capacity of 220 MMcfd, another gas processing plant southeast of Bloomfield with a capacity of 80 MMcfd, and about 1,400 miles of gathering systems with more than 2,600 well connections. Williams has negotiated long-term agreements with producers for virtually all of the gas connected to the GCNM gathering and processing systems. In addition, it expects to compete for new gas in the gathering area. During the past several years, the system has operated at about 60% of capacity. Williams plans to increase the load factor to 90-95% within 2 years. Increased production is supported by long-term contracts with producers. As soon as Williams receives permits, it plans to start building an interconnect from the Kutz processing plants near Bloomfield to the Blanco Hub, a multipipeline marketing interexchange. The interconnect will provide an additional 100 MMcfd of take-away capacity from the plants and access to two more interstate pipelines, Transwestern Pipeline Co. and Northwest Pipeline Corp. Copyright 1995 Oil & Gas Journal. All Rights Reserved.