Three exciting facts that distinguish MPLX’s natural gas processing operations
We are excited to expand our midstream presence in the Southwest and to begin supporting producers in the Delaware Basin.
Editor’s note: Through subsidiaries, Marathon Petroleum Corporation owns the general partner of MPLX LP, a master limited partnership. In 2015, MPLX merged with MarkWest Energy Partners, L.P., whereby MarkWest became a wholly owned subsidiary of MPLX. For more information, visit http://www.mplx.com.
Operated by MarkWest Energy Partners, L.P., the new Hidalgo cryogenic gas processing facility began operations in May 2016. Located in Culberson County, Texas, the facility represents an exciting new venture into the Permian Basin, a promising area of energy development. Here are some of the top reasons the new operation is great news for MPLX and the energy world.
1. There is strong potential for growth.
The new facility represents a growing demand for natural gas operations in the region. This growth directly reflects MarkWest’s commitment to its strong customer base of producers, and indicates the even stronger potential for sustained growth into the future.
MarkWest built the Hidalgo Complex in 13 months to process gas for Cimarex Energy Co. and Chevron U.S.A. in the Delaware Basin of the Greater Permian Basin, said Kevin Thompson, general manager of the Hidalgo Complex, as well as the Javelina gas processing and fractionation facility in Corpus Christi, Texas, and the company’s Eagle Ford gathering system in Asherton, Texas.
“For MarkWest, this was an opportunity to get into the Permian Basin, one of the most competitive markets for drilling,” Thompson said, noting that the area accounts for the majority of operating rigs in Texas. MarkWest anticipates that growing demand from producer customers may eventually lead to increased capacity.
For the full-year 2016, MPLX expects processed volume growth from its Southwest operations to increase by approximately 15 percent. The majority of this increase will be supported by the addition of the Hidalgo Complex, as well as growing gas volumes from the Cana-Woodford Shale in Oklahoma and the Cotton Valley formation in East Texas.
2. Operations are safe, efficient and reliable.
“At MarkWest, we are known for building our facilities fast and safely, hitting our deadlines and hitting our budget,” Thompson said. With Hidalgo, that was the commitment to customers, and the company worked hard to follow through on those commitments, he said.
At just three months into operation, the new MarkWest processing plant was operating at 80 percent capacity and running at its goal reliability rate of 99 percent. In this case, the proof is in the numbers that MarkWest is not only well positioned in growing areas, but operates with high reliability as well.
3. MPLX remains one of the largest gas processors in the United States.
MPLX now operates approximately 7.5 billion cubic feet per day (Bcf/d) of total processing capacity. Nearly 1.5 Bcf/d of MPLX’s processing capacity is dedicated to producer customers operating in Oklahoma and Texas. These positive statistics can be attributed to the strength of its customers and the continued increase in demand in the region.
“We are excited to expand our midstream presence in the Southwest and to begin supporting producers in the Delaware Basin,” said MPLX President Donald C. Templin. “The Hidalgo Complex is backed by long-term, fee-based agreements with strong customers who are dedicated to developing this exceptional resource in West Texas.”