Aspen Midstream, LLC Announces Construction of a Large Diameter Residue Gas Pipeline and Lean and Rich Gas Gathering Systems in Texas’ Austin Chalk Play
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The Aspen Austin Chalk System is supported by long-term dedications
totaling approximately 150,000 acres.
Aspen
Midstream, LLC (“Aspen”) today announced the company is constructing
a large diameter residue pipeline and both a lean and a rich gas
gathering system in the Austin Chalk play in Texas. Aspen’s Austin Chalk
System is located in the Giddings Field. Producers drilling the Giddings
Field are developing multiple stacked pay zones, including the Austin
Chalk and Eagle Ford Shale formations. The Aspen Austin Chalk System is
strategically located to ensure producer access to premium residue and
NGL markets and spans the Giddings Field, including Washington, Fayette
and Burleson counties, along with portions of Austin, Brazos, Colorado
and Waller counties.
The system is supported by a combined total of approximately 150,000
acres of long-term dedications from multiple producers. Aspen is engaged
in discussions with other producers about additional dedications. The
system is expected to be in service by the third quarter of 2019.
“We are extremely excited about the Aspen Austin Chalk System and the
opportunity to team up with premier producers in an area lacking
adequate pipeline and processing capacity,” said Aspen Midstream CEO
James Clarke. “We believe our system’s proximity to premium markets for
both NGLs and natural gas takeaway will allow our producers to realize
better netbacks and compete economically with other basins.”
Aspen Midstream is backed by growth capital from EnCap
Flatrock Midstream. “The Aspen Midstream team has a customer-focused
culture and outstanding commercial and operational skills,” said EnCap
Flatrock Midstream Partner Sam Pitts, who is also a member of the Aspen
board of directors. “Aspen is developing a top-tier system, and we look
forward to helping the company grow its business in the Austin Chalk.”
System Details
The initial system will consist of more than 90 miles of 10- to 20-inch
gas gathering mainlines, treating facilities, a state-of-the-art
cryogenic processing plant with the capacity to process 200 million
cubic feet of natural gas per day (MMcf/d), and a residue gas pipeline
to the market hub at Katy, Texas.
Aspen Midstream expects to expand its Austin Chalk System by adding
additional gathering, cryogenic processing and treating facilities as
necessary and is engaged in discussions with the area’s producers to
determine future needs.
About Aspen Midstream, LLC
Headquartered in Dallas, Aspen Midstream is an independent energy
company launched in 2017 to fill strategic voids in the midstream
sector. Aspen Midstream creates value for producers by offering a
full-service portfolio of midstream solutions. Capabilities include
natural gas gathering, processing, compression and treating; condensate
stabilization; crude oil gathering and terminaling; and produced-water
gathering. Aspen is backed by EnCap Flatrock Midstream. Visit www.aspenmidstream.com
for more information.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven
management teams focused on midstream infrastructure opportunities
across North America. The firm was formed in 2008 by a partnership
between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based
in San Antonio with offices in Oklahoma City and Houston, the firm
manages investment commitments of nearly $9 billion from a broad group
of prestigious institutional investors. EnCap Flatrock Midstream is
currently making commitments to new management teams from EFM Fund IV, a
$3.25 billion fund. For more information please visit www.efmidstream.com.
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Copyright Business Wire 2018
Source: Business Wire
(October 11, 2018 - 10:15 AM EDT)
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