GOLDEN, Colo.--(BUSINESS WIRE)--
Thunder Creek NGL Pipeline, LLC (Thunder Creek), a subsidiary of Meritage Midstream Services II, LLC (Meritage), today announced the start of a binding open season for a new interstate, common-carrier pipeline system that will transport unfractionated natural gas liquids (NGLs) produced in Wyoming’s Powder River Basin to potential delivery points on the Overland Pass Pipeline near the Colorado-Wyoming border and the Front Range NGL Pipeline near Lucerne, Colo. The open season will begin at 8 a.m. Mountain Time on Oct. 30, 2013, and will close at 5 p.m. Mountain Time on Nov. 29, 2013. The pipeline is expected to have a preliminary design capacity of 40,000 barrels per day and is expected to become operational in the second quarter of 2015.
The open season process provides potential shippers with the opportunity to make volume commitments and execute long-term transportation contracts with Thunder Creek. Shippers electing to make long-term volume commitments to Thunder Creek will be eligible to receive priority transportation service at a premium rate for their committed volumes. Shippers electing to make long-term acreage dedications above a minimum threshold will be eligible for discounted transportation rates on the pipeline for volumes not subject to a volume commitment.
Meritage Chairman and CEO Steve Huckaby said, “We are excited about the future of the Powder River Basin. Our excitement is a reflection of rig counts across the basin and of the ongoing discussions we are having with producers who are planning long-term drilling programs. This is a basin with multiple economic formations offering many opportunities for producers. It’s our job to stand beside our customers, working with them to ensure they have the infrastructure and optionality they need to take advantage of those opportunities. The Thunder Creek NGL Pipeline is a significant extension of our Thunder Creek gathering and processing network and will give producers an integrated solution for moving their products to market.”
The Thunder Creek NGL Pipeline plans to offer producers in the liquids-rich Powder River Basin multiple points of origin throughout the basin and options for delivering product to NGL markets at Mont Belvieu, Texas, and/or Conway, Kan. Based on shipper interest, origin points for the Thunder Creek NGL Pipeline may include:
- Thunder Creek Gas Services’ planned 200 MMcfd gas processing plant in Converse County, Wyo.;
- Thunder Creek Gas Services’ Fifty Buttes gas processing plant in Campbell County, Wyo., which is in the engineering and permitting phase;
- Thunder Creek Gas Services’ 4-43 gas processing plant in Campbell County, Wyo., which is in service;
- Access Midstream’s Bucking Horse gas processing plant near Douglas, Wyo.;
- Tall Grass Energy’s Douglas processing plant near Douglas, Wyo.;
- ONEOK’s Sage Creek gas processing plant in Converse County, Wyo.
Thunder Creek will also consider additional origin points in the area upon shipper request.
A complete description and additional details regarding the pipeline, including a notice of open season, are available by contacting Cole Stanley at C.Stanley@meritagemidstream.com or 303.551.8150.
About Meritage Midstream Services
Based in Golden, Colo., Meritage Midstream provides oil and gas producers with a full complement of midstream services. Capabilities include the gathering, compression, treating, processing, fractionation, transportation and marketing of natural gas, NGLs and condensate; gathering, terminaling, blending, transporting and marketing crude oil; and transporting and handling frac sand and produced water. The company’s senior management team has more than 200 years of collective experience in the midstream business. Meritage is backed by equity commitments from Riverstone Holdings LLC. Visit www.meritagemidstream.com for more information.
- Oil, Gas, & Consumable Fuels
- Powder River Basin
Casey Nikoloric, 303-507-0510 m