Eagle Rock Energy Partners LP, Houston, has reported its intention to expand its high efficiency cryogenic Phoenix processing plant, located in Hemphill County, Texas by an incremental 30 MMcf/d. Once the expansion is completed, the plant capacity will total 80 MMcf/d.
The expansion of the Phoenix Plant, coupled with additional expansions of related gathering systems, will increase Eagle Rock's total processing and gathering capacity and accommodate volume growth from the Granite Wash play. The expansion of the Phoenix Plant and certain gathering systems is a direct complement to the Partnership's recent acquisition of the CenterPoint Energy assets which extended the partnership's reach into Hemphill and Wheeler Counties in its East Panhandle System.
The expansion of the Phoenix Plant and related gathering systems is expected to be completed in the fourth quarter of 2011 at a cost of approximately $20 million. Eagle Rock does not anticipate downtime or reduced throughput volumes across its East or West Panhandle Systems during the completion of the project.
In addition, due to the increased demand for additional processing capacity in the area, the Partnership does not intend to shut down and re-direct gas volumes from its Canadian Plant in Hemphill County, Texas into the Phoenix Plant as previously announced. The partnership's Canadian Plant will remain operating, with total processing capacity of 25 MMcf/d.
Joseph A. Mills, chairman and chief executive, stated, "We are pleased to announce the expansion of our Phoenix Plant to take advantage of the growth we are seeing in the Granite Wash play and to better serve our producer customers as they expand their drilling footprints."
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