Crosstex Energy Awards Contracts and Begins Construction on Silver Creek Gas Plant in East Texas

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Researched by Industrial Info Resources (Sugar Land, Texas). Crosstex Energy LP (NASDAQ:XTEX) (Dallas, Texas) has begun construction on a $50 million Silver Creek natural gas processing plant located near Azle, Texas. The new Silver Creek processing plant is designed to produce natural gas liquids (NGL) and has the capacity to process 200 million cubic feet per day (mmcfd) of natural gas. Crosstex has awarded the engineering and major equipment fabrication contract for the new cryogenic plant to Thomas Russell Company (Tulsa, Oklahoma). Crosstex also awarded Saulsbury Engineering & Construction Incorporated (Odessa, Texas) a contract for the installation of the pipeline and compression components of the Silver Creek project.

The compression contract covers the installation of three new 6,500 horsepower Solar Taurus T-70 turbine-driven compressor packages. The pipeline contract provides for the construction of four miles of a new natural gas transmission pipeline. Crosstex began the civil construction on the Silver Creek plant earlier this year and is currently pouring the foundations for the plant. Crosstex expects to complete construction and place the Silver Creek gas processing plant into service in August 2007. The construction of this new processing plant comes on the heels of the 50 mmcfd Azle, Texas NGL plant that Crosstex placed into service in November 2006.

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