USX Corp. unit USX-Delhi Group disclosed plans to boost West Texas gas supplies via a series of gas gathering and processing agreements, recent acquisitions, and expansion projects.
Delhi said supplies will increase by more than 100 MMcfd as a result of separate deals with Conoco Inc., NGC Corp. unit Warren Petroleum Co. LP, and Production Operators Inc. (POI) involving gathering, processing, and transportation, as well as pipeline assets, in Pecos and Terrell counties.
Agreements cover gathering and processing for Conoco and its working interest partners' Val Verde basin natural gas production; acquisition of 48 miles of 20-in. pipeline and a transportation component for Warren; and acquisition of POI's Comanche Creek Pipeline System.
In the Conoco deal, Delhi will use the 16-in. and 12-in. pipelines it acquired earlier this year from Canyon Reef Carriers Inc. (OGJ, Aug. 19, p. 87). Lines were subsequently converted to gas service from carbon dioxide (CO2).
Also, Delhi will expand capacity of the 40 MMcfd Tippett processing plant acquired last April to 50 MMcfd. A March 1997 completion is planned for both the Tippett expansion and receipt of about 50 MMcfd of gas from Conoco and its partners.
As part of the Warren agreement, Delhi will transport as much as 42 MMcfd of Val Verde basin gas for Warren's account to a new interconnect with Warren's 16-in. Gomez lateral in Pecos County. Delhi plans to connect this newly acquired 20-in. pipeline to its 16-in. CRC line and its existing West Texas system, allowing Delhi to move gas supplies from Terrell County to its existing Coyanosa processing plant and Waha header, in addition to the Tippett complex.
Delhi is proceeding with expansion of Coyanosa Plant capacity to 130 MMcfd from 100 MMcfd, with completion set for second quarter 1997.
The Comanche Creek acquisition consists of 103 miles of high-pressure, 6-in. pipeline used to transport CO2.
In conjunction, Delhi entered into an agreement with Fina Oil & Chemical Co. to transport CO2 from Fina's Pikes Peak treating plant in Pecos County.
Fina also signed separate long-term agreements that give Delhi the option to gather and process Delhi-interest gas being developed on more than 275,000 acres of leasehold in southern Pecos County.
Copyright 1996 Oil & Gas Journal. All Rights Reserved.
