Dallas-based Lucid Energy said last month it has reached agreement with ExxonMobil subsidiary XTO Energy for long-term natural gas gathering and processing. XTO will deliver natural gas production from its leases in southeastern New Mexico to Lucid’s South Carlsbad gas gathering and processing system. Lucid said, “The agreement provides XTO with firm processing capacity and enables deliveries of gas and NGLs to ExxonMobil’s downstream and chemical manufacturing sites on the Gulf Coast.”
Lucid also said it started development of Red Hills V, its next large cryogenic processing plant at its flagship complex in Lea County. Commissioning is expected in 2020Q2 (with capacity to process 230 million cubic feet of natural gas per day) after Red Hills IV commissioning in October 2019.
