Atlas Pipeline Partners Announces Long Term Agreement With XTO Energy

Friday, December 2, 2011
  • Atlas Pipeline entered into an agreement with XTO Energy to provide natural gas gathering and processing services for up to 60 million cubic feet per day.

Atlas Pipeline Partners, L.P. announced that it has entered into a long-term, fee-based agreement with XTO Energy Inc.a subsidiary of ExxonMobil, to provide natural gas gathering and processing services for up to an incremental 60 million cubic feet per day from the Woodford Shale region of Oklahoma to its Velma processing facility in Velma, OK. Under the agreement, APL will provide gathering and processing services for XTO production in the liquids-rich area within the Woodford Shale. The agreement also supports APL's previously announced expansion of its Velma system.

Eugene N. Dubay, Chief Executive Officer of APL stated, 'We are pleased to enter into this long-term agreement with XTO with respect to production in the area around our Velma facility. Activities in the area have increased over the past year and we are adding capacity to address the needs of our producer customers. We are excited to work with them on their development plans and are pleased to be adding de-risked cash flows to the business through this arrangement,' stated Eugene N. Dubay, Chief Executive Officer of APL. .

Terry Schultz, Senior Vice President of Marketing, XTO Energy said, "This agreement will help provide XTO Energy the necessary infrastructure to operate effectively in the Woodford Shale and access markets beyond the region,"

APL previously announced a 60 mmcfd expansion of the Velma facility on May 12, 2011. The cryogenic facility is expected to be brought in-service in the middle of 2012. This agreement with XTO Energy will utilize this new facility, which will bring the name plate processing capacity of the Velma facility to 160 mmcfd after the expansion is completed.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

Related News

Join 70,000 other oil and gas professionals

Network with others, build your profile, and receive the latest oil and gas news in your inbox. It's free!

Your details are never shared or sold. We hate spam too.

» More Jobs       » Upload a free Job       » Upload your CV

More Europe Jobs

More Global Jobs

Opinion & Commentary

  • Nanotechnology hits the oilpatch
    Dropping energy prices—for both oil and natural gas—has investors and analysts checking to see what the break-even price is for oil production in each play ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Mastering 4D Seismic
Ian Jack, London, 06 Nov 2014

Petroleum Geology of West Africa
Duncan Macgregor, London, 12 Nov 2014

Introduction to Contingency Planning: The value to oil and gas companies in high-risk areas
Mark Theobald, London, 18 Nov 2014

All Upcoming Training


Opinions & Commentary

Oil decline: Price makes the story

by Kurt Cobb

Read More »