UOP, a Honeywell company, announced yesterday that its newest UOP Russell modular gas processing plant has begun processing rich natural gas and recovering natural gas liquids (NGLs) in northern Louisiana.
The plant was put into service by Houston, Texas-based master limited partnership (MLP) PennTex Midstream Partners (PennTex), a company that provides natural gas gathering and processing as well as residue gas and natural gas liquids transportation services to producers in the Terryville Complex in northern Louisiana. PennTex completed and put into service its first UOP Russell gas plant in May 2015.
“Over the past 18 months, our team has worked side by side with Honeywell UOP to complete these two projects in north Louisiana,” said Tommy Stone, PennTex chief engineer and operations officer, in a statement. “Through this collaboration, PennTex has been able to meet the needs of our customers in a safe and efficient manner.”
For both plants, Honeywell UOP supplied and installed modular cryogenic, dehydration, acid gas removal, and inlet/residue compression units along with the control system, flare system and site electrical equipment. Honeywell UOP also provided site utility systems and buildings for an office, a control room, a motor control center and compressions.
“Natural gas is on trend to become the world's second-largest source of energy by 2035, so the ability to process gas reserves profitably is critical to meet that growing demand,” said John Grugel, vice president and general manager of Honeywell UOP's gas processing and hydrogen business. “UOP Russell pre-engineered modular gas processing plants, coupled with a turnkey solution, help companies such as PennTex process gas and recover valuable NGLs faster than with stick-built plants, all with better quality and more attractive economics.”
PennTex launched its initial public offering in June this year, placing 11.25 million shares of common units representing limited partner interests for $20 per share and offering an additional 1,687,500 common units to underwriters. After holding on near the $19.50 mark through the end of June, the stock slid first into the $18 range and then dropped to just over $17 followed by a sharp dip at the start of August to a low of $15.
By mid-August, about the time of the company's first quarterly distribution that saw shareholders receiving returns of $0.0665 per share, PTXP shares were back up to $18.51 per share, though September has seen prices slide lower by the week.
As of Friday, September 25 at 9:30 am EST, PTXP stock was holding at $16.31 per share.