Navitas Midstream Partners, LLC announced yesterday the execution of a long-term gas purchase agreement with Encana Oil & Gas (USA) Inc. 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-inch high-pressure pipeline, providing fully integrated services for both natural gas and natural gas liquids.
Navitas also announced plans to construct 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 MMcf per day 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-inch high-pressure pipeline. The entire project is expected to be completed early second quarter of 2017.