Enron Oil Trading & Transportation Co. plans to nearly triple the capacity of its crude oil gathering system in South Texas in response to growing production from wells with horizontal drain holes.
The company plans a $3.3 million project to increase pump capacity on its main line system and lay 15 miles of line from the existing line near Divot, Tex., to Enron's Pearsall, Tex., station.
Upon completion of the project by June, Enron will increase its capacity into Pearsall to 75,000 b/d from 25,000 b/d. The company currently is transporting about 20,000 b/d in the Pearsall area.
Enron also has begun permitting and acquisition of right-of-way for 32 miles of line from Pearsall to Lytle, Tex. This second expansion depends on volume available for transport and market conditions.
The company expects to decide whether to proceed with the second expansion by the end of June. Construction would be complete by yearend.
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