USX-Delhi Group Announces 10-Year Gas Gathering Agreement with Marathon Oil Company

USX-Delhi Group, a unit of USX Corporation, announced that Delhi Gas Pipeline Corporation has completed negotiations with Marathon Oil Company for a 10-year gas gathering, treating, and transportation agreement. The agreement covers a significant area in East Texas, where Marathon plans to move a minimum of 90 billion cubic feet of gas over the contract term. The agreement will enable the expansion of Delhi's gathering and treating capacity, ultimately increasing the pipeline's capacity to over 100 million cubic feet per day.

Key Takeaways:

• Delhi Gas Pipeline Corporation has completed negotiations with Marathon Oil Company for a 10-year gas gathering, treating, and transportation agreement.
• The agreement covers an area of interest 14 miles wide and 70 miles long in Freestone, Leon, Limestone, and Robertson Counties in East Texas.
• Marathon plans to move a minimum of 90 billion cubic feet of gas over the contract term with an initial available capacity under the agreement of 50 million cubic feet per day.
• Delhi will construct 25 miles of pipeline to connect Marathon's existing and future production directly to Delhi's existing Teague Treating Facility.
• Sulfur treating capacity at the Teague facility will be expanded from 14 to 18 long tons per day.
• The ultimate design capacity for the new gathering and treating facilities exceeds 100 million cubic feet per day.
• Delhi plans to integrate this new pipeline and additional treating capacity with its existing 2,100-mile East Texas System.
• Completion and start-up of the new facilities are scheduled for November 1 of this year.
• USX-Delhi Group owns and operates extensive pipeline systems and associated treating and processing plants, primarily in Texas and Oklahoma.
• Marathon Oil Company is involved in worldwide exploration, production, transportation, and marketing of crude oil and natural gas, and domestic refining, marketing, and transportation of petroleum products.

Statistics:

• 90 billion cubic feet of gas to be moved by Marathon over the 10-year contract term.
• 50 million cubic feet per day initial available capacity under the agreement.
• 25 miles of pipeline to be constructed by Delhi to connect Marathon's production to the Teague Treating Facility.
• Sulfur treating capacity at the Teague facility to be expanded from 14 to 18 long tons per day.
• Ultimate design capacity for the new gathering and treating facilities exceeds 100 million cubic feet per day.
• November 1, 1995: scheduled completion and start-up of the new facilities.

Sources:

• PRNewswire
• USX Corporation
• Marathon Oil Company
• USX-Delhi Group
• Delhi Gas Pipeline Corporation