Petrogen buys Matagorda Island pipeline

Petrogen has purchased a natural gas transmission pipeline on Matagorda Island on the Texas Gulf Coast from Sweet Oil, Petrogen said March 30. Terms were not disclosed. Petrogen said that with the acquisition it now controls the only gas gathering right of way on Matagorda Island. Ownership of the pipeline gives the company the ability to transport its own production from the Emily Hawes field property, as well as to transfer production from other island operators. The pipeline, which Petrogen said is “fully ready” to transport gas, has the capacity to deliver up to 20 million cubic feet of natural gas per day. During the last six months, Petrogen conducted integrity tests on the line to ensure transmission capacity and made upgrades where necessary.

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