Sept. 06–A Dallas natural gas pipeline and processing company has signed an agreement with Marathon Oil Co. of handle gathering operations across Houston oil company’s New Mexico acreage.
Lucid Energy Group said the agreement would cover all of Marathon’s operated acreage in Lea County, New Mexico, and some of the company’s acreage in Eddy County. Both counties are part of the Permian Basin, which stretches from West Texas into New Mexico and is the most productive shale play in the country.
The cost of the agreement was not released.
Lucid Energy will also be opening a new natural gas processing plant in Lea County with a capacity of 200 million cubic feet per day. The plant will be Lucid Energy’s fifth in southeast New Mexico and bring the company’s regional processing capacity up to 750 million cubic feet a day.
Natural gas production in the Permian is only second to the Appalachia region in the eastern U.S., and has grown 31.3 percent in the last year, according to data from the Department of Energy.
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