XTO Energy cancels plan to build oil and gas plant in Eddy County

XTO Energy cancels plan to build oil and gas plant in Eddy County

  • Post published:September 9, 2020
  • Post category:News

Oil and gas giant, XTO Energy, has cancelled it’s permit application to build and operate a new natural gas plant and central delivery point in Eddy County citing “future infrastructure development plans” in the region.  The now rescinded application was for two facilities known as the Husky Gas Plant and Central Delivery Point about 14 miles northeast of Loving, NM. The facilities would have had the capacity to process about 200,000 barrels per day of oil stabilization as well as natural gas and natural gas liquids. 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.

The facility was expected to emit about 2.7 million tons per year of greenhouse gases, eliciting a vehement opposition from Jeremy Nichols, climate and energy program director for the environmental group Wild Earth Guardians. Nichols and Wild Earth Guardians argued the new facility would negatively impact the air quality for surrounding commmunities, in spite of the New Mexico Environment Department determining the expected emissions would not exceed air quality standards. Ethan Boor, an environmental engineer with XTO Energy, noted the company recently began operations at its Cowboy Central Delivery Point, a natural gas processing plant in Lea County about 18 miles southeast of Loving and will continue to use existing infrastructure to develop in the Permian with a “smaller environmental footprint.” With job losses in the Permian Basin still crippling local communites and livlihoods, the loss of the proposed plant will be the latest blow to New Mexico’s largest revenue creating industry. Read more HERE.