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Powder River NGL Pipe, Open Season Launched

Signaling stepped up future activity in the Powder River Basin, a unit of Meritage Midstream Services II LLC launched a 30-day open season Wednesday through Nov. 29 for an interstate natural gas liquids (NGL) pipeline in Wyoming with possibly two connection points in Colorado.

Thunder Creek NGL Pipeline LLC is conducting the open season, which if successful, would carry NGLs from the Power River Basin with potential delivery points on the Overland Pass Pipeline near the Colorado-Wyoming border and the Front Range NGL Pipeline near Lucerne, CO.

The new pipeline would have a 40,000 b/d capacity and could begin commercial operations in the second quarter of 2015, offering producers multiple points of origin and options for delivering NGLs to markets at Mont Belvieu, TX and/or Conway, KS, a spokesperson said.

Based on interest drawn in the open season, origin points for the pipe may include four existing and two proposed processing plants.

They include Thunder Creek’s planned 200 MMcf/d processing plant in Converse County, WY; its planned Fifty Buttes processing plant in Campbell County, WY, now in the engineering and permitting phase; and its 4-43 plant in Campbell County now in service.

Also considered for origin points would be Access Midstream's Bucking Horse processing plant near Douglas, WY; Tall Grass Energy's Douglas processing plant; and Oneok’s Sage Creek processing plant in Converse County.

"Shippers electing to make long-term volume commitments will be eligible to receive priority transportation service at a premium rate for their committed volumes," the spokesperson said of the open season.

In addition, potential shippers willing to make long-term acreage dedications above a minimum threshold will also be eligible for discounted transportation rates on the new pipeline for volumes not subject to a volume commitment.

Meritage CEO Steve Huckaby said the services provider is bullish on Powder River Basin, reflecting "rig counts across the basin and the ongoing discussions we are having with producers who are planning long-term drilling programs."

Huckaby called Power River a basin with "multiple economic formations offering many opportunities for producers." 

For more information on the open season, contact Cole Stanley at C.Stanley@meritagemidstream.com or 303-551-8150.

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