Southern Union Company announced that its Panhandle Eastern Pipe Line Company subsidiary has signed a straddle agreement with Next Generation Processing, LLC (NGP).
NGP plans to build and operate a natural gas liquids extraction plant near the Panhandle Eastern compressor station in Haven, KS. The straddle agreement between the parties would allow NGP to process natural gas delivered through Panhandle Eastern’s Haven compressor station. The straddle agreement also gives Panhandle Eastern the future option to purchase the plant from NGP. The plant, which will be capable of processing up to 1.4 Bcf/d, is expected to be in service by late 2013.
“Panhandle Eastern believes that this plant will provide attractive processing opportunities for local producers of rich gas in the nearby Granite Wash and Mississippi Lime formations and benefit its current shippers by increasing supply on the Panhandle Eastern Pipe Line system,” said Eric D. Herschmann, vice chairman, president and COO.