Western Gas to Acquire Encana’s Colorado Assets

Western Gas Partners has announced that it will acquire midstream assets located in the DJ Basin of north-eastern Colorado, US, from Encana Oil & Gas for $303m.

As part of the agreement, Western Gas will buy Encana’s Ft Lupton processing plant, which is located adjacent to Western Gas’ Ft Lupton property.

The Encana plant, which is flowing at capacity, consists of two cryogenic processing trains with 84 million cubic feet per day of total capacity, to be expanded to 100MMcf per day.

Western Gas will also purchase five gathering systems that consist of 1,054 miles of pipeline, 18 compressors with a total of 14,306 horsepower, and other related assets.

Two of the gathering systems are connected directly to Encana’s Ft Lupton plant, while the other three gathering systems deliver natural gas to the plant through Western Gas’ Wattenberg Gathering System.