Apache, Crosstex announce $85M gas plant deal

NEW YORK — Crosstex Energy LP said Tuesday it will team up with Apache Corp. on an $85 million natural gas processing facility in west Texas.

The facility will process natural gas from Apache's Deadwood development in Glasscock County. The companies will jointly own the facility. The facility will include a refrigeration plant with a capacity of 20 million cubic feet per day that will be operational in the final three months of 2011. A cryogenic gas processing facility will be added next year.

Crosstex, a Dallas pipeline and marketing company, said it will also buy and upgrade a nearby rail terminal to transport liquefied natural gas to another processing facility in southern Louisiana.

Crosstex shares fell 16 cents to $17.45 in morning trading.