Natural gas processor Atlas Pipeline Partners LP has brought online the expansion at Velma, a new state-of-the-art cryogenic facility in Oklahoma.
The expansion supports the partnership's long-term, fee-based agreement with XTO Energy Inc, a subsidiary of ExxonMobil, to provide natural gas gathering and processing services for up to an incremental 60 million cubic feet per day (mmcfd) from the Woodford Shale.
Due to increased activity in the rich gas areas where the Velma system is located, the expansion is operating at 50 percent of capacity, well ahead of previously announced expectations. With additional compression work expected next week, the new plant could be expected to reach 75 percent of capacity shortly thereafter.
The partnership will continue to evaluate additional opportunities in Velma's areas of operation and work with its producer customers to continue to develop the area.
On the WestOK system in northern Oklahoma and southern Kansas, APL expects its 200 mmcfd expansion to be online next month. The drilling activity in the Mississippi Lime has continued to increase behind the system and volumes continue to grow in excess of current processing capacity. Once this expansion is completed, the WestOk system will have total processing capacity of 458 mmcfd.
The partnership also recently completed the purchase of gathering systems in Barber and Harper counties, Kansas, which include approximately 60 miles of gathering pipelines and associated rights-of-way. These gathering systems are already connected to the WestOk system and will allow the partnership to further expand into these areas of Kansas.
Atlas Pipeline is also announcing the purchase of the Mansfield gathering system in the Barnett Shale play in Tarrant County, Texas. The system consists of 19 miles of gathering pipeline that is used to facilitate gathering some of the newly acquired production for APL's affiliate, Atlas Resources Partners, LP.
