The Crosstex Energy companies, Crosstex Energy, L.P. and Crosstex Energy, Inc., is continuing to expand its gas gathering and processing capabilities in the Permian Basin through a new long-term, fee-based agreement with a major oil and gas producer in the region.
This agreement builds upon the $210 million in investments Crosstex has already made in the Permian Basin to take advantage of growing production in the region, including its joint venture with Apache Corp., the Mesquite fractionator and the Bearkat gathering and processing complex.
In conjunction with the agreement, the Partnership is constructing a 35-mile, 12-inch pipeline that will provide critical gathering capacity for the Bearkat natural gas processing complex. The cost is expected to be $70 million.
The new-build, Texas-based pipeline, located in the eastern portion of the Wolfberry oil play, will originate at the Partnership’s Bearkat gas processing facility, under construction in Glasscock County. The pipeline will have a capacity of 100 MMcf/d and will provide gas takeaway solutions for constrained producer customers in Howard, Martin and Glasscock counties. Right-of-way acquisition is underway and the pipeline is expected to be operational later this year.