Natural Gas Business
The Hidetown plant on our Anadarko System, which is comprised of six natural gas processing plants.
Anadarko System
The Partnership's Anadarko System, located
within the Anadarko Basin in the Texas
Panhandle and western Oklahoma, has experienced
considerable growth as a result of the
rapid development of the Granite Wash play
in Hemphill and Wheeler Counties in Texas.
Although rig counts were down by 63 percent
during the first half of 2009, causing a decline
in natural gas production in the region, volume
recently has begun to rise slightly. While
rig counts in early 2010 were still well below
the peak levels of 2008, producers are drilling
considerably more horizontal wells in the
region and the early results have been promising
with high initial production rates. Natural
gas in this region has a high content of natural
gas liquids (NGLs), which enhances the
economics of these wells due to the value of
the natural gas liquids.
Volumes on our Anadarko System are expected to stay
level or potentially rise slightly due in part to high prices
for NGLs.
The Anadarko System consists of approximately 1,800
miles of natural gas gathering and transportation pipelines
in southwestern Oklahoma and the Texas Panhandle
and includes six natural gas processing plants.
North Texas System
A substantial portion of natural gas on our North Texas
System is produced in the Barnett Shale area within the
Fort Worth Basin Conglomerate, a mature zone that is
experiencing slow production decline. In contrast, the
Barnett Shale area is one of the most active natural gas
plays in North America. We anticipate that throughput on
the North Texas System will increase modestly in each
of the next several years as a result of continued Barnett
Shale development. That is, producers will continue to
balance the economics of lower commodity prices with
the prolific drilling opportunities of the Barnett Shale.
The North Texas System includes approximately 4,500
miles of natural gas gathering pipelines and nine natural
gas processing plants.