Oil and gas company SM Energy Co struck long-term service agreements with Energy Transfer Partners' Texas unit to transport and process gas produced from the Eagle Ford shale field in South Texas.
The deal comes less than a month after Energy Transfer Partners entered into a similar agreements with two producers in Texas. [ID:nL3E7EM350]
ETC Texas Pipeline has committed to transport up to 240,000 million British thermal units per day over a ten-year term, starting 2013.
"This new agreement with ETC provides additional, longer term take-away capacity for our natural gas and natural gas liquids as we continue to ramp up the development of our Eagle Ford shale assets," SM Energy Chief Executive Tony Best said.
Eagle Ford shale, whose current total production is estimated at 80,000 barrels per day, contains crude oil and natural-gas rich in liquids that can be stripped out and sold at a premium.
SM Energy, which did not disclose any financial terms, said the deal was fee based and will not require it to invest any upfront capital.
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The deal comes less than a month after Energy Transfer Partners entered into a similar agreements with two producers in Texas. [ID:nL3E7EM350]
ETC Texas Pipeline has committed to transport up to 240,000 million British thermal units per day over a ten-year term, starting 2013.
"This new agreement with ETC provides additional, longer term take-away capacity for our natural gas and natural gas liquids as we continue to ramp up the development of our Eagle Ford shale assets," SM Energy Chief Executive Tony Best said.
Eagle Ford shale, whose current total production is estimated at 80,000 barrels per day, contains crude oil and natural-gas rich in liquids that can be stripped out and sold at a premium.
SM Energy, which did not disclose any financial terms, said the deal was fee based and will not require it to invest any upfront capital.
Read More
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