Houston-based Elevate Midstream Partners LLC agreed to build roughly 19 miles of 16-inch diameter gas gathering pipelines in the Haynesville Shale of East Texas to support a new shipper deal with Sabine Oil and Gas Corp.

The agreement also includes associated laterals, amine, dehydration and compression facilities in the Carthage area, Elevate said Monday. 

The operator entered into an eight-year gas gathering and treatment agreement with Houston-based Sabine, which has operations in Harrison and Panola counties.

“We will be looking to similarly assist other customers in the region to connect, via our pipeline, to more favorable markets that ultimately will access increasing Gulf Coast demand,” said Elevate CEO Roger Fox.

Elevate formed in late 2017 with a $100 million investment from Dallas-based private equity Tailwater Capital LLC. Tailwater made a similar investment in then newly formed Producers Midstream LP in 2016.

Sabine filed for Chapter 11 bankruptcy protection in New York in 2015, then emerged from bankruptcy in 2016 as a private company.

The company’s last filing with the Securities and Exchange Commission before filing for bankruptcy iterated a total quarterly production volume of 19.4 Bcfe for the third quarter of 2014. Today, the company’s operations target the Granite Wash formation in North Texas, the Eagle Ford Shale in South Texas and the Haynesville and Cotton Valley Sand formations in East Texas.

Operators in the gas-heavy Haynesville, which underlies East Texas, Arkansas and Louisiana, have faced headwinds over the past year amid doggedly weak gas prices. Chesapeake Energy Corp., and Comstock Resources Inc. during 2Q2019 conference calls indicated they would reduce activity in the play. Goodrich Petroleum Corp., remained undeterred from its Haynesville aspiration, however.

In July, gas permits in the Haynesville fell by 18 month/month to 150, even as permit applications for unconventional gas alone accelerated by 26%, according to data compiled by Evercore ISI.