MCNIC Pipeline & Processing, a subsidiary of MCN EnergyGroup, and American Central Gas Companies, have formed apartnership to own and operate a gas gathering system in theCarthage field of East Texas. MCNIC Pipeline & Processing has a40% interest, and American Central holds 60%.
The new venture, American Central Eastern Texas Gas Co.,operates an 80-mile, primarily low-pressure gas and condensategathering system in Panola County, TX. It gathers about 100 MMcf/dfrom about 300 wells. With most pipe either 12 or 8 inches indiameter, the system has capacity of more than 200 MMcf/d. The newventure is an extension of an existing relationship with AmericanCentral in Oklahoma.
“Together, we have been able to identify and develop nichegathering opportunities that provide reliable, flexible andlow-cost services that help reduce producers’ lifting costs,” saidMCNIC Pipeline & Processing President Joseph L. Roberts Jr. American Central President and CEO Stephen E. Jackson said thepartnership is poised for growth. “The East Texas system is in anarea of significant drilling activity, providing potential forrapid expansion of the existing facilities. We also seeopportunities to expand our venture by securing new gathering andprocessing facilities.” An MCN spokesman said the system iscontinually expanding, “and we expect to keep it that way for quitesome time with all the drilling activity in the area.” He said hedidn’t have details on expansion activities.
In July, MCNIC and American Central Gas formed an alliance toown and operate a gathering system in the Anadarko Basin of westernOklahoma. MCNIC holds a 40% interest in the venture, and AmericanCentral holds 60%. American Central Western Oklahoma Gas Co.operates the Foss Lake Gathering System, a 76-mile, low-pressuresystem in Custer and Roger Mills counties, OK. The system gathersabout 40 MMcf/d from about 100 wells.
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