Published: September 11, 2018 |

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Lucid Energy Group has signed a new long-term natural gas gathering and processing agreement with Marathon Oil Permian, a unit of Marathon Oil Company.

Under the new agreement, Lucid now provides midstream services to Marathon under a long-term acreage dedication for all of Marathon’s operated acreage in Lea County, New Mexico, and a portion of Marathon’s operated acreage in Eddy County, New Mexico. To serve Marathon’s growing production, Lucid will significantly expand its existing gathering and compression infrastructure network.

Lucid also announced it is preparing to commission a new cryogenic processing plant at its Red Hills Natural Gas Processing Complex in Lea County. Known as Red Hills III, the new plant has the capacity to process 200 million cubic feet per day (MMcf/d) and is expected to come into service in October 2018. Red Hills III will provide additional processing capacity in support of near-term production from new commercial agreements, including the Marathon agreement. The plant is Lucid’s fifth cryogenic plant in southeast New Mexico and will bring Lucid’s total processing capacity in the Delaware Basin to 750 MMcf/d.

“Marathon is a premier producer and a valued customer that we are fortunate to serve. We are excited to see results from the world-class Delaware Basin continue to improve because of talented operators like Marathon. We are highly focused on staying in front of our customers’ drilling programs with new infrastructure and facilities that preserve the high standard of service producers have come to expect from Lucid,” said Lucid CEO Michael J. Latchem.

Source: Compelo

To stop by Lucid’s website, CLICK HERE

To stop by Marathon’s website, CLICK HERE

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