Crosstex, Apache to develop Permian gas plant

By OGJ editors
HOUSTON, July 12
-- Crosstex Energy LP and Crosstex Energy Inc., Dallas, today announced a joint investment, with Apache Corp., Houston, of $85 million in a new natural gas processing plant in the Permian basin in West Texas.

Initial phase of the project will provide interim and long-term processing, compression, and residue gas takeaway for Apache's Deadwood development in Glasscock County. Crosstex and Apache will fund the project equally as well as hold equal working interest.

Initially, Crosstex and Apache will install a 20-MMcfd refrigeration plant as interim gas processing and handling that is to be operating by this year’s fourth quarter. A 50-MMcfd cryogenic gas processing will be operating by second-quarter 2012. Crosstex will manage construction and serve as operator.

In addition, Crosstex will purchase, upgrade, and refurbish the abandoned Patriot fractionator in Midland County initially to serve as a rail terminal for Apache raw-make NGL. Crosstex will move NGL via rail to fractionation and sales at its Eunice, La., plant. Product will be delivered to the Mesquite terminal via existing NGL pipelines or by trucks.

Crosstex will invest $12 million in the project, which is to be completed and operating in the fourth quarter. The Crosstex announcement said the plant will provide NGL takeaway for “the constrained Permian infrastructure” until a long-term pipeline becomes available.

Crosstex operates about 3,300 miles of pipeline, 9 processing plants, and 3 fractionators.



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