ExxonMobil expands natural gas processing capacity in Piceance Basin

ExxonMobil Production Company announced the completion of new field processing capacity at its Piceance Project on the western slope of the Rocky Mountains in Rio Blanco County, Colorado.

The new facilities have the capacity to handle up to 200 million cubic feet per day of natural gas. They include gas and liquid gathering systems, treating facilities, a produced-water pipeline and subsurface disposal system, and a condensate sales and truck-loading site.

ExxonMobil has been producing natural gas in the Piceance Basin for nearly 50 years and is currently producing about 100 million cubic feet per day. The company currently is operating seven drilling rigs to increase its Piceance production.

Natural gas is expected to be the fastest-growing major fuel source, driven largely by its increased use to generate electricity. ExxonMobil’s leases in the Piceance Basin hold a potential recoverable resource of 45 trillion cubic feet of gas.

Natural gas in the Piceance Basin is trapped within rock as dense as concrete and in discontinuous zones separated by thin layers of shale. To recover the “tight gas,” ExxonMobil is applying proprietary technology and best practices.

Water conservation is a priority at the project. ExxonMobil developed a system that reuses the water recovered from production for other processes. This reduces fresh water use by about 80%.