Enable Midstream completes Oklahoma processing plant

July 11--Two new natural gas processing plants have become operational in central Oklahoma, highlighting the continued focus on the region despite the ongoing two-year industry downturn.

Enable Midstream Partners LP's newest natural gas processing plant is fully operational, capable of processing up to 200 million cubic feet of natural gas per day, the partnership announced Monday.

The Bradley II Plant is in Grady County, where Enable's pipeline infrastructure and processing facilities can support natural gas production in the SCOOP and STACK plays.

"The Bradley II Plant provides natural gas processing capacity to support our customers' development in the prolific SCOOP and STACK plays and continues the build out of our super-header system, which is uniquely positioned to support long-term production growth out of these plays as well as other plays located in the Anadarko Basin," CEO Rod Sailor said in a statement. "Bradley II will also provide natural gas supply into Enable's interstate and intrastate transportation pipelines for delivery to downstream markets in the midcontinent and southeast United States."

Central Oklahoma's STACK and SCOOP plays are two of the few areas where oil and natural gas activity has continued even as prices have tumbled.

"They are huge resources that are going to be developed, and that's are going to mean a tremendous amount of growth in and along those areas," Sailor said at the Oklahoma State University Energy Conference in May. "That development will greatly benefit Oklahoma and the larger economy outside of Oklahoma."

Enable's cryogenic natural gas processing plant is the ninth such facility connected to Enable's processing system, which has a total capacity of almost 1.7 billion cubic feet of natural gas per day.

Also on Monday, Houston-based ARM Energy and HPS Investment Partners LLC said their Kingfisher Midstream Lincoln natural gas processing plant became operational earlier this month. Phase one of that project includes a 60 million cubic feet per day processing facility, more than 100 miles of natural gas gathering pipeline, more than 100 miles of crude oil gathering pipeline, a 50,000 barrel oil storage facility and six crude oil truck loading stations.

"Bringing the Kingfisher Midstream Lincoln plant online and on schedule is an exciting milestone for our partnership and for producers in the STACK," ARM CEO Zach Lee said in a statement. "The facility will greatly alleviate some of the production bottlenecks in the STACK area by providing ... needed processing capacity. Producers in the area may now benefit from an unconstrained gas gathering option as well as a centralized crude oil truck load-out facility."

Phase 2 is expected to add another 200 million cubic feet per day of processing capacity.

"Producers in the STACK continue to have impressive results from multiple horizons adding to the economic viability of the play," said Taylor Tipton, president of ARM Midstream and ARM Energy Management. "As the STACK develops, and as Kingfisher Midstream's processing capabilities expand, the added processing capacity, firm residue take away, and crude pipeline connectivity to Cushing will ensure those economics are protected."

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