Lucid Energy Group, Dallas, has executed a long-term natural gas gathering and processing agreement with Marathon Oil Permian LLC, a subsidiary of Marathon Oil Co., under which it has agreed to provide midstream services to Marathon under a long-term acreage dedication for all of Marathon’s operated acreage in Lea County, NM, as well as a portion of Marathon’s operated acreage in Eddy County, NM.
As part of the agreement, Lucid also will expand its existing gathering and compression infrastructure network to serve Marathon’s growing production, Lucid said.
Alongside its announcement of the Marathon agreement, Lucid said it also is preparing to commission a cryogenic processing plant at its Red Hills natural gas processing complex in Lea County.
Known as Red Hills III, the plant has the capacity to process 200 MMcfd and is scheduled to enter service in October.
The Red Hills III plant will provide additional processing capacity in support of near-term production from commercial agreements, including the Marathon agreement.
The plant, which will become Lucid’s fifth cryogenic plant in southeastern New Mexico, will bring Lucid’s total processing capacity in the Delaware basin to 750 MMcfd.
Lucid commissioned its Red Hills II cryogenic processing plant in May 2017 (OGJ Online, May 23, 2017).
Contact Robert Brelsford at [email protected].
