Burlington Resources has joined forces with Enron Capital &Trade Resources Corp. in a gas gathering partnership that willserve the Wind River Basin in Wyoming, where processing andtransportation constraints have held back production in recentyears. The two companies have formed Lost Creek Gathering Co.L.L.C. to build a new 124-mile, 24-inch diameter wet gas gatheringheader from the Madden Field in central Wyoming to a processingplant located near Wamsutter, WY.
The processed gas will be delivered into Colorado InterstateGas’ and Wyoming Interstate Co.’s mainline transportation systems.First deliveries are expected in the first quarter of 2000.Burlington will retain a 65% operating interest in the partnership,while ECT will hold the remaining 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 about 105 MMcf/d in 1997, according toBurlington spokesman. Burlington holds about 37% of that gas, mostof which is coming from the deep Madison formation and theshallower Lower Fort Union and Lance formations. The gas coming outof the deeper formations requires removal of carbon dioxide andhydrogen sulfide at the Lost Cabin Gas Plant, which Burlingtonplans to expand to handle 130 MMcf/d of gas by the fourth quarter.
Kevin Hannon, president and COO of Enron Capital & Trade saidthe partnership is a “unique opportunity to combine the strengthsof the largest natural gas marketer in the U.S. and one of thelargest independent gas producers in the U.S. We look forward toworking with natural gas producers in the Wind River Basin toprovide 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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