Navitas Midstream Partners, LLC (Navitas) has announced the execution of a long term gas purchase agreement with Encana Oil & Gas (USA) Inc. (Encana). Under the agreement, Navitas will purchase Encana's gas from its substantial acreage position in Howard County, Texas. Navitas will gather gas into a new system consisting of low pressure gathering lines, multiple compressor stations and a 38 mile, 16 in. high pressure pipeline, providing fully integrated services for both natural gas and natural gas liquids (NGLs).
Navitas also announced plans to construct a new cryogenic processing capacity near its existing Spraberry processing complex to accommodate Encana and other producers' gas from Howard, Glasscock, Martin, Midland and Upton Counties. The new processing facilities will increase Navitas's combined processing capacity in the Midland Basin to approximately 155 million ft3/d and will have carbon dioxide treating and nitrogen rejection capabilities.
In addition to new gathering and processing facilities, Navitas will be looping a significant portion of its existing Spraberry system mainline with a new 20 in. high pressure pipeline. The entire project is expected to be completed early in the 2Q17.
"Encana has accumulated a tremendous acreage position in western Howard County, and we are pleased to have been selected to work with them in this exciting area," said R. Bruce Northcutt, Chief Executive Officer of Navitas. "We have seen tremendous well results from the Wolfcamp and Spraberry formations in western Howard County, and our new infrastructure and producer focused midstream services will bring competitive advantages to oil and gas operators in the area."
In addition to the announced expansion projects, Navitas is going to continue its installation of new, highly efficient field compression. These upgrades are part of Navitas's continued focus on improving operating run times, reducing losses and improving overall efficiencies of its facilities to the benefit of producers.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/17052016/navitas-midstream-partners-long-term-gas-agreement-encana-oil-gas-3319/