Large U.S. liquids plant starts up
- El Paso Field Services, Houston, TX (United States)
- ABB Randall, Houston, TX (United States)
Operation began in 1996 on the new Chaco liquids-extraction plant in northwest New Mexico. The plant`s extraction capacity--50,000 b/d of NGLs from 600 MMcfd of gas--exceeds that of any other turboexpander plant in the lower 48 states. Regulatory reform made the project possible, and significant regulatory, economic, environmental, technical, and logistic challenges were overcome to achieve plant start-up. Operator El Paso Field Services, Houston, believes the new Chaco plant creates added value when compared to the lean-oil extraction plant which El Paso had operated at the San Juan basin site since the 1950s. Success of the project was based, in part, on the following: creation of a free-market company by the spin-down of El Paso Field Services (EPFS) from El Paso Natural Gas (EPNG); establishment of agreements with producers behind the plant to share the benefits generated by the plant in exchange for acreage dedication; negotiation of an agreement with Mid-America Pipeline Co. to expand its pipeline system to receive and deliver to market liquids from the new plant; and selection of ABB Randall which committed to engineer, procure for, and construct the plant at a cost which provided an adequate rate of return. These four issues are discussed. Construction and start-up are described.
- OSTI ID:
- 477482
- Journal Information:
- Oil and Gas Journal, Vol. 95, Issue 19; Other Information: PBD: 12 May 1997
- Country of Publication:
- United States
- Language:
- English
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