Burlington Resources has joined forces with Enron Capital &Trade Resources Corp. in a gas gathering partnership that willserve the Wind River Basin in Wyoming, which has suffered fromprocessing and transportation constraints in recent years.
The two companies have formed Lost Creek Gathering Co. L.L.C. tobuild a new 124-mile, 24-inch diameter wet gas gathering headerfrom the Madden Field in central Wyoming to a processing plantlocated near Wamsutter, WY. The processed gas will then bedelivered into Colorado Interstate Gas’ and Wyoming InterstateCo.’s mainline transportation systems. First deliveries areexpected in the first quarter of 2000. Burlington will retain a 65%operating interest in the partnership, while ECT will hold theremaining 35% share.
“This project will provide increased gathering flexibility incentral Wyoming. It is of particular interest to BR because itcomplements and enhances our future development plans at the MaddenField,” said Burlington CEO Bobby Shackouls.
Over the next year, sharp production growth is expected out ofthe Wind River, particularly the Madden Field. Gas coming out ofMadden is expected to rise to 240 MMcf/d by year-end from only 130MMcf/d in 1998 and 105 MMcf/d in 1997. Burlington holds about 37%of that gas, most of which is coming from the deep Madisonformation and the shallower Lower Fort Union and Lance formations.The gas coming out of the deeper formations requires removal ofcarbon dioxide and hydrogen sulfide at the Lost Cabin Gas Plant,which Burlington plans to expand to handle 130 MMcf/d of gas by thefourth quarter.
Kevin Hannon, President and COO of Enron Capital & Tradesaid the partnership is a “unique opportunity to combine thestrengths of the largest natural gas marketer in the U.S. and oneof the largest independent gas producers in the U.S. We lookforward to working with natural gas producers in the Wind RiverBasin to provide this much needed gathering service and access tocompetitive markets.” Enron will be responsible for marketing allthe capacity on the gathering system that is not used forBurlington’s production.
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