Lucid Energy purchases new cryogenic processing plant in the Permian Basin

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Dallas-based Lucid Energy Group – a midstream services company operating gas and oil gathering and processing facilities in the Midland Basin – announced today that the company has purchased a new cryogenic processing plant that will be located 10 miles south-east of the town of Big Lake in Reagan County, Texas.

This strategic location is in the heart of the Permian’s Midland Basin in West Texas. Manufactured by UOP Russell, the Big Lake Plant has a natural gas processing capacity of 200 million cubic feet per day (MMcf/d) and will bring Lucid’s total processing capacity in the Midland Basin to 320 MMcf/day. The Big Lake Plant will connect to Lucid’s 450-mile pipeline system and support natural gas production from the Wolfcamp Shale in Irion, Reagan and Crockett counties. Construction is underway and the plant is expected to be in service in the first quarter of 2015.

Big Lake will be the third natural gas processing plant that Lucid has constructed since the company started operating in the Permian Basin less than two years ago. The facility will be located near the centre of volume growth on Lucid’s rapidly expanding gas gathering system and in close proximity to multiple residue gas and natural gas liquids markets. The Big Lake Plant will connect to Lucid’s existing high-pressure gas header system, which reaches across five counties in the Midland Basin.

“With the ongoing improvements in drilling and completion techniques and an increase in rig activity, production growth from Lucid’s customers continues to be robust,” said Jay Langham, Lucid’s managing director and chief operating officer. “I could not be more pleased with the performance of our operations team as we continue to stay in front of the needs of our customers and their development programs.”

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