Azure Midstream Energy has started expansion of its Holly gas gathering system in Louisiana, US, with an investment of approximately $24m.
The project is designed to reduce the system’s line pressures to 500 pounds per cubic inch from the current over 1,200 pounds per cubic inch, to improve volume deliveries.
The Holly system comprises approximately 335 miles of high- and low-pressure pipeline, four amine treating plants with combined capacity of 920 million cubic feet per day (MMcf/d) and two 1,340 horsepower compressors.
It currently serves Haynesville and Bossier shale formations and the liquids-rich Cotton Valley formation.
As part of the expansion, the company will expand the 12-inch gathering pipeline with a 9-mile extension, which will connect northwest side of Holly to prospective undeveloped sections and will initially hold approximately 40 MMcf/d of natural gas.
The project also involves addition of approximately 15,000 horsepower compression capacity, which is planned to be commissioned by October.
Azure Midstream Energy president Berthelot II said: "The Holly optimization project advances Azure’s commercial focus on increasing volumes within our core areas, and growing the business through strategic commercial opportunities."