Dallas-based Lucid Energy Group has agreed to expand its natural gas gathering and processing in the Permian Basin of New Mexico with a subsidiary of Marathon Oil Co., and to commission a cryogenic processing plant in Lea County.
Lucid already has a long-term acreage dedication for all of Marathon Oil’s operated acreage in New Mexico’s Eddy County and portion of Lea County. Under the new agreement with Marathon Oil Permian LLC, Lucid would expand the existing gathering and compression infrastructure network.
“We are highly focused on staying in front of our customers’ drilling programs with new infrastructure and facilities that preserve the high standard of service producers have come to expect from Lucid,” said CEO Michael J. Latchem.
Lucid also plans in October to commission its fifth cryogenic plant in southeastern New Mexico, Red Hills III. The processor at the Red Hills Natural Gas Processing Complex in Lea County would have capacity to process 200 MMcf/d and support near-term production from new commercial agreements, including with Marathon.
Once Red Hills III is online, Lucid’s total processing capacity in the Delaware sub-basin would be 750 MMcf/d.
Lucid is considered one of the largest privately held natural gas processors in the Permian with about 2,000 miles of pipeline in operation and 120,000 hp of compression in operation or under construction, in addition to its gas processing capacity.
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