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Western Gas unit to provide gas gathering services for Anadarko subsidiary

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Western Gas unit to provide gas gathering services for Anadarko subsidiary

Western Gas Partners LP subsidiary Delaware Basin Midstream LLC agreed to provide gas gathering services in the Delaware Basin of West Texas for an Anadarko Petroleum Corp. unit.

Under the deal, Anadarko E&P Onshore LLC will provide acreage dedications for the whole contract period, running through Dec. 31, 2032. The deal may continue after the scheduled termination date, unless ended by either party. The gathering fee would be computed using a cost-of-service methodology until Dec. 31, 2027, after which it will be changed to a fixed rate with yearly increases, according to an Oct. 9 SEC filing.

The gas gathering agreement also consolidates and replaces three separate agreements between subsidiaries of Western Gas and Anadarko E&P.

Delaware Basin Midstream focuses on natural gas gathering, compression, processing, fractionation, transportation and liquids marketing activities.