Teak Midstream Constructs Gathering System in Eagle Ford

Source: www.gulfoilandgas.com 2/21/2012, Location: North America

TEAK Midstream, L.L.C. announced the company is constructing over 200 miles of natural gas gathering and residue delivery pipelines and an adjoining 200 million cubic feet per day (MMcf/d) cryogenic gas processing plant in South Texas to better serve gas producers operating in the Eagle Ford Shale play. TEAK has executed 10-year firm gathering and processing agreements with Talisman Energy USA Inc. and Statoil Natural Gas LLC that support the construction of the facilities. The cost of the project is approximately $280 million to TEAK’s interest. The company expects the facilities will be operational early in the third quarter of 2012..

The new facilities will consist of two separate high-pressure gas gathering systems. One system will consist of 125 miles of 24-inch-diameter pipeline with a capacity of approximately 600 MMcf/d and another system will consist of 20 miles of 20-inch-diameter pipeline with a capacity of approximately 400 MMcf/d. The 125-mile system will initially originate on acreage jointly owned by Talisman and Statoil in La Salle County and will move rich gas production to TEAK’s new gas processing plant in Bee County, Texas, called the Silver Oak Plant. .

TEAK will own the first 50-mile segment of this system that will originate in La Salle County and will be called the La Salle Lateral. The remaining 75-mile segment of the pipeline, which will be called the Bee Express, will be jointly owned by TEAK and TexStar Midstream and will travel through McMullen, Live Oak and Bee counties to the Silver Oak Plant as its final destination. The TEAK-owned, 20-mile pipeline system, named the Karnes Lateral, will also initially originate on acreage jointly owned by Talisman and Statoil and will move rich gas production from Karnes County to the new processing plant..

The Silver Oak gas processing plant is being constructed near the community of Pettus. The facility will be equipped with state-of-the-art technology and equipment designed specifically to handle liquids-rich Eagle Ford Shale gas, which will help maximize natural gas liquids (NGL) recovery from producers’ gas streams. The project also includes the construction of approximately 51 miles of 20-inch-diameter residue gas pipeline that will deliver dry gas from the Silver Oak Plant. TEAK plans for this pipeline to initially connect with four major downstream interstate pipelines – Tennessee Gas Pipeline, Texas Eastern, Transco and NGPL, and cross several other interstate and intrastate pipelines. Additionally, TEAK will construct approximately three miles of 12-inch-diameter NGL pipeline that will transport liquids recovered at the processing plant to the DCP Sand Hills NGL pipeline, which will ultimately deliver NGLs to the Mont Belvieu fractionation complex and other fractionation facilities that will be connected to the Sand Hills pipeline along the Gulf Coast..

“We are extremely pleased to have negotiated agreements with Talisman and Statoil, whose commitments fully support our project. We look forward to a long-term working relationship with these outstanding energy companies as we build our asset base in the Eagle Ford,” said TEAK Co-Chief Executive A. Chris Aulds. “Our new assets, which will be complementary to our 325-mile Texana gathering system in South and East Texas, will expand our footprint in South Texas and provide us with an ideal growth platform. The project greatly enhances our gathering and processing capabilities and raises our customer service to a new level as we help producers move their gas and NGLs to market.”.

“This project is a big positive step forward for TEAK and greatly enhances our assets in the Eagle Ford Shale in South Texas. We appreciate the invaluable guidance and support of Natural Gas Partners, our private equity partner, on this project, which will significantly accelerate TEAK’s growth,” said TEAK Co-Chief Executive Jim Wales.

Related Categories: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

Related Articles: Coalbed Methane  General  Heavy Oil  Methane Clathrate  Oil Sands  Oil Shale  Shale Gas  Tight Gas  Tight Oil 

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