Anadarko Petroleum Corp., Houston, said Thursday it has acquired Pinnacle Gas Treating Inc., a wholly owned subsidiary of Western Gas Resources Inc., for $38 million.
Pinnacle owns and operates a natural gas pipeline and treating plant serving East Texas, where Anadarko is developing the Bossier sand gas play. Anadarko is running 33 drilling rigs in the Bossier, making it the most actively drilled play in North America.
Anadarko will continue to operate the assets under the Pinnacle name and employ Pinnacle's staff of 16 people.
John Seitz, Anadarko president and CEO, said, "This acquisition will give us increased flexibility in how we ship and market our Bossier gas, as well as improve the service we can offer to other shippers. The Pinnacle pipeline tracks the Bossier trend through four East Texas counties. As gas volumes in the area continue to grow, we'll be able to expand the system right along with it.''
The 500 MMcfd gas pipeline runs from Franklin to Bethel through Freestone, Anderson, Leon, and Robertson counties. It consists of 60 miles of large-diameter pipe, 40 miles of small diameter laterals and spurs, and a 60-mile fuel re-delivery system. The 300 MMcfd treating plant at Bethel removes CO2 and H2S from the gas.
Anadarko is shipping 275 MMcfd through the Pinnacle pipeline and Bethel plant. It plans to expand capacity at Bethel.
