Iron Horse Midstream is adding another natural gas cryogenic processing plant at its 120-acre complex in Grady County, OK, in the heart of the Anadarko Basin.
The Dallas-based firm said the 200 MMcf/d plant would boost natural gas processing capacity in the SCOOP/STACK (South Central Oklahoma Oil Province and Sooner Trend of the Anadarko Basin, mostly in Canadian and Kingfisher counties) and Merge plays to 425 MMcf/d. Further expansions are possible based on customer demand.
“As production activity in this highly prolific area continues to increase, installing our second train is a natural and necessary growth opportunity,” said CEO Tim Roberts. “Expanding our Iron Horse processing complex provides capacity exactly where it is needed – in the core of the basin, where we have access to numerous high-quality, residue gas markets.”
The Iron Horse System includes about 300 miles of high- and low-pressure natural gas gathering pipelines, multiple compressor stations and the 225 MMcf/d Iron Horse cryogenic gas processing plant.
“We understand that our success is driven by the success of the companies we serve,” Roberts said. “This expansion is a testament to our continued focus on providing reliable, customized and flexible midstream solutions to our producer customers.”
Backed by equity commitments from EnCap Flatrock Midstream and NGP Energy Capital Management, Iron Horse also designs, constructs, owns and operates regulated transmission pipelines delivering directly into interstate markets. In addition, it provides oil and condensate gathering services.
In the November Drilling Productivity Report, the Energy Information Administration said natural gas output from the Anadarko would increase by 4 MMcf/d from November to December. Like several other producing basins, the Anadarko continues to draw down its backlog of drilled but uncompleted (DUC) wells. The number of DUCs in the region slid by five month/month.
EIA said it expects combined natural gas output from the Haynesville and Appalachia regions; the Anadarko and Permian basins; and the Bakken, Eagle Ford and Niobrara shales to reach 95.687 Bcf/d in December, a 564 MMcf/d sequential increase.
Meanwhile, the number of rigs operating in the SCOOP as of Friday (Nov. 18) fell by one unit week/week, while the rig count in the STACK increased by two, according to the latest tally published by Baker Hughes Co.
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