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

  • Should we be in the Arctic?
    The sanctions-driven freeze on US and European involvement in the Russian Arctic gives us time to consider a fundamental question: Should we be exploring in the Arctic at ...
  • 99 Red Balloons...
    ...was the title of an anti-nuclear protest song by the German singer Nena and her group of the same name, released in German in 1983 and in English in 1984. It came into my head ...

» More Opinion & Commentary         » Write for us             RSS RSS

Oil & Gas Training

Introduction to Oil and Gas Exploration and Production
Dr Helen Turnell, London, 02 Oct 2014

Integrated Subsurface Description for Reservoir Development & Production
Mike Bowman, London, 15 Oct 2014

Delivering Information Management
Alan Smith, London, 28 Oct 2014

All Upcoming Training


Opinions & Commentary

Oil price, Northern Petroleum, Petroceltic, Sound Oil, Sundry -BP-Tangiers and finally...

by Malcolm Graham-Wood

Read More »