Meritage Midstream Services has entered into an agreement with Swift Energy to provide natural gas gathering and treating services in the Eagle Ford shale region of south Texas.
The 25 mile pipeline project includes two lateral extensions to Meritage Midstream’s Eagle Ford Escondido gathering system in Webb County, Texas; a 14.5 mile, 12-inch pipeline to the northwest into Swift Energy’s Fasken operating area; and a 10.5 mile, 16-inch extension to the southeast to increase takeaway capacity.
Meritage Midstream will expand treating capacity at its South Calahan facility as volumes on the gathering system increase.
Swift Energy CEO Terry Swift said that this agreement and others reduce Swift’s exposure to the continuing tightness of gathering outlets facing operators in south Texas.
"We expect an increase in operating activity in 2011 and have taken numerous steps to ensure that we can drill, complete and produce our wells without interruption due to third party service constraints," Swift said.
Swift Energy is engaged in developing, exploring, acquiring and operating oil and gas properties, with a focus on oil and natural gas reserves onshore in Louisiana and Texas and in the inland waters of Louisiana.