Conoco Increases Permian Basin Natural Gas Processing Capacity By 42 Percent.Business/Energy Editors HOUSTON--(BUSINESS WIRE)--Dec. 6, 2000 Conoco Inc. (NYSE NYSE See: New York Stock Exchange :COCA coca (kō`kə), common name for shrubs of the genus Erythroxylum, particularly E. coca, of the family Erythroxylaceae, and found abundantly in upland regions and on mountain slopes of South America, as well as in Australia, India, ) (NYSE:COCB) and LG&E Energy Corp. today jointly announced Conoco's acquisition of LG&E's natural gas gathering and processing business assets in New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , Texas, Oklahoma and Montana. "Acquisition of the LG&E business more than doubles our natural gas gathering capacity in southeast New Mexico and increases our processing capacity in the region by 42 percent," said Mike L. Johnson, Conoco vice president for natural gas and gas products. "The properties are a significant enhancement to Conoco's natural gas portfolio and allow us to continue building larger and more integrated natural gas operations in markets where we can establish a competitive advantage." Conoco will acquire three natural gas processing Natural gas processing plants, or fractionators, are used to purify the raw natural gas extracted from underground gas fields and brought up to the surface by gas wells. The processed natural gas, used as fuel by residential, commercial and industial consumers, is almost pure plants in New Mexico and Texas, with a combined processing capacity of 86 million cubic feet of gas per day (MMCFD). Also included in the acquisition are a natural gas storage facility and 1,200 miles of natural gas pipelines. Terms of the acquisition were not disclosed. Johnson said the integration of Conoco's existing New Mexico operations and the LG&E properties in the state creates one of the largest natural gas gathering, processing and transportation systems in the southeast New Mexico region. The new natural gas assets will be incorporated into Conoco's Maljamar, N.M., natural gas operations. "The existing Maljamar operation is primarily a low-pressure gas system, while the LG&E assets are mostly high-pressure," Johnson said. "The systems are highly complementary, and when combined will create a business of sufficient size and scale to make Conoco even more competitive in the region's natural gas business." The consolidated operations will include 1,500 miles of gathering systems with a capacity in excess of 300 MMCFD; four natural gas processing plants with 165 MMCFD capacity; and storage capacity of 10 BCF BCF Billion Cubic Feet BCF Bioconcentration Factor BCF British Chess Federation BCF British Coatings Federation BCF Breast Cancer Fund BCF Bank Credit Facility BCF Bulked Continuous Filament BCF British Cycling Federation BCF Boeing Converted Freighter . The consolidated operations will make Conoco a more efficient competitor for third-party natural gas produced in southeast New Mexico and will move Conoco from the fifth to second largest natural gas gatherer in the region. Additionally, the new system will leverage the company's natural gas and gas liquids marketing programs in California, the mid-continent region of the U.S. and Texas. Johnson said some of the LG&E assets that do not fit Conoco's natural gas business strategy will be sold. Conoco is a major, integrated energy company active in more than 40 countries. LG&E Energy Corp., headquartered in Louisville, Ky., is a Fortune 500 diversified diversified (di·verˑ·s energy services company with businesses in power generation and project development; retail gas and electric utility services; and asset-based energy marketing. The company owns and operates Louisville Gas and Electric Company, a regulated electric and gas utility serving Louisville, Ky., and 16 surrounding sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. counties; and Kentucky Utilities Kentucky Utilities (KU) is based in Lexington, KY and provides electricity to 77 counties in Kentucky and 5 counties in Virginia (under the name Old Dominion Power.)[1]. History Kentucky Utilities was formed in 1912 to serve five areas of Kentucky. Company, a regulated electric utility, based in Lexington, Ky., which serves customers in 77 Kentucky counties and five counties in Virginia The Commonwealth of Virginia is divided into 95 counties and 39 independent cities, which are considered county-equivalents for census purposes. Note that the map in this article, taken from the official United States Census Bureau site, includes Clifton Forge as an independent city. . LG&E Energy also owns equity in and operates non-utility power plants in six states as well as in Spain; owns interests in three natural gas distribution companies in Argentina; and owns CRC-Evans Pipeline International Inc., the world's leading provider of specialty equipment and services to the natural gas and oil pipeline construction industry. http://www.conoco.com http://www.lgeenergy.com This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about Conoco's operations and business plans. These statements are not guarantees of future performance, involve certain risks, uncertainties, and assumptions that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Actual outcomes and results may differ materially from what is expressed in this announcement. Among the factors that could cause such differences are crude oil and natural gas prices; differences in anticipated product margins; interruptions or reductions in natural gas supplies; potential disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. or interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. of the operation of the company's processing or transportation facilities due to accidents, technical difficulties or political events; changes in governmental regulations; and other matters detailed in Conoco's publicly available filings with the Securities and Exchange Commission. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion