In another expression of renewed interest in the Austin Chalk, Aspen Midstream LLC said Thursday it is building a large-diameter residue gas pipeline and both lean and rich gas gathering systems in the Giddings Field in South Texas.
The initial system would 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 MMcf/d, and a residue gas pipeline to the market hub at Katy, TX.
The system, which is scheduled to be in service by 3Q2019, is supported by a combined total of 150,000 acres of long-term dedications from multiple producers, and Aspen is engaged in discussion with other producers about additional dedications, the Dallas-based company said.
"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 [natural gas liquids] markets and spans the Giddings Field, including Washington, Fayette and Burleson counties, along with portions of Austin, Brazos, Colorado and Waller counties," Aspen said.
The Austin Chalk, which extends from South Texas into Louisiana, has recently reappeared on the radar of domestic producers. EOG Resources Inc. and Magnolia Oil and Gas Corp. have seen better returns from their Austin Chalk acreage than parts of their Eagle Ford position, for example.
The Giddings Field has become a hotbed of activity as well, with Magnolia Oil & Gas Corp. buying 114,000 net acres there in August and TPG Pace Energy Holdings Corp. announcing earlier in the year that production from the field was exceeding forecasts.