NEW YORK (AP) -- Southern Union Co. said Tuesday it plans to build a natural gas processing plant to accommodate fields in west Texas and southeast New Mexico.
The Houston energy company said it will spend $235 million on the Red Bluff Project. The project will include a plant that can process 200 million cubic feet of gas per day as well as associated gathering, compression and treatment facilities.
The plant will serve natural gas production in underground shale fields in the area including the Avalon, Bone Spring and Wolfcamp plays. The project is expected to be completed by the middle of 2013.
Southern Union is the subject of a takeover battle between pipeline operators Williams and Energy Transfer. On July 19, Southern Union accepted Energy Transfer's latest offer of $9.4 billion, including the assumption of debt.