Newfield signed an agreement with Midcontinent Express Pipeline (MEP) for approximately 200 million cubic feet per day (MMcf/d) of firm capacity on the MEP transmission system.
MEP, which connects Bennington in Oklahoma to Perryville in Louisiana, will have an initial capacity of 1.4 billion cubic feet per day. Pricing for Newfield’s expected gas sales will be tied to the Gulf Coast indices.
Newfield’s gas will be delivered to Bennington through a new 50-mile pipeline planned by MarkWest Energy Partners. This line will connect MarkWest’s gathering system in the Woodford shale play to Bennington.
Under a separate agreement, Newfield and Laclede Energy Resources signed a five year agreement for the firm sale and purchase of approximately 40MMcf/d in 2008 and 50MMcf/d for 2009-12.
The gas will be delivered into firm transportation by the Centerpoint Energy Gas Transmission Company and is priced using a fixed differential to New York Mercantile Exchange.
