One expansion just wasn’t enough for Mitchell Energy &Development Co., which yesterday announced plans for a secondadd-on to its Bridgeport natural gas processing plant in NorthTexas. The expansion, planned for completion by July 2001, isexpected to help the company double its capacity within a year,matching the rapidly growing gas production from Mitchell’s NewarkEast Barnett Shale field.

The initial plant expansion by the Woodlands, TX-based companybegins this month, increasing processing capacity by 100 MMcf/d to310 MMcf/d. Maximum production of natural gas liquids at Bridgeportwill increase by 8,000 bbl/d to 27,000 barrels. The secondexpansion will bring capacity to 430 MMcf/d and 37,000 bbl/d.

“These projects are being driven by the continuing success ofour development drilling and recompletion programs in the BarnettShale, including the recent decision to increase the number of rigsdrilling to 12 by this coming February,” said CEO George P.Mitchell. “We expect Bridgeport to be operating at full capacityearly next year, just months after the first expansion comesonstream. Likewise, we expect that the capacity to be added in Julywill be fully utilized no later than early 2002.”

Mitchell said that even though next year’s volume forecasts arestill being finalized, he expects the step-up in Barnett drillingand the plant expansions to “exceed the previously announced 20%volume growth rates.”

The latest expansion, which is expected to cost $64 million,also includes construction of a 49-mile, 24-inch diameter pipelineand the addition of 27,000 horsepower of compression to removeresidue gas south from Bridgeport to two major gas transportationsystems. The expansion would give Mitchell flexibility to sell itsNorth Texas gas production into all of the major interstatetransportation systems as well as local intrastate markets.

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