XTO opts out of building a new natural gas operation in New Mexico

 

XTO Energy, a subsidiary of ExxonMobil has decided to not move ahead with construction of a new natural gas facility in the Permian Basin in southeastern New Mexico.

The Associated Press reported that the company has withdrawn its application for a permit to build and operate the facility in Eddy County, citing future infrastructure plans in the area.The application was for two facilities known as the Husky Gas Plant and Central Delivery Point planned to operate in Eddy County about 14 miles (22 kilometers) northeast of Loving.

The facilities would have had the capacity to process about 200,000 barrels per day of oil stabilization.

Overall, the facility was also expected to emit about 2.7 million tons (2.5 million metric tonnes) per year of greenhouse gases.

Records show the New Mexico Environment Department found the expected emissions would not exceed air quality standards, and on Aug. 4 announced its intent to approve the permit.

In the letter withdrawing the permit, Ethan Boor, an environmental engineer with XTO Energy, said it was to be withdrawn in response to “future infrastructure development plans” in Eddy County.

Source: Associated Press