Houston based Southern Union Co said that its board of directors has approved construction of the USD 235 million Red Bluff Project in the Permian Basin.

The 200 million cubic feet per day natural gas processing plant and associated gathering, compression and treatment facilities will be operated through the company’s midstream component, Southern Union Gas Services.

The construction builds on an existing multiphase midstream expansion developed in response to producer needs in the Avalon Shale, Bone Spring and Wolfcamp plays in west Texas and southeast New Mexico.

The company will build about 60 miles of pipeline to deliver up to 20,000 barrels per day of natural gas liquids. The project is slated for completion during the middle of 2013.

Mr George L Lindemann chairman & CEO of Southern Union said in a prepared statement that existing Permian Basin midstream infrastructure is nearing capacity, and the Red Bluff project will provide long term solutions for treating and processing natural gas liquids.

(Sourced from www.bizjournals.com)