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Canyon Midstream Partners LLChas begun development of a natural gas gathering, processing and treating system in the Permian Basin called the James Lake System. The project is anchored by a 10-year gathering and processing agreement with "one of the world's largest oil and gas companies," the company said. The system is to include a cryogenic processing plant in Ector County with an initial capacity of 70 MMcf/d and treating capabilities for gas containing hydrogen sulfide and carbon dioxide. To supply the plant, Canyon is developing 40 miles of high-pressure gathering trunklines and three compressor stations, which will connect to low-pressure field gathering systems it is constructing for its anchor customer in Ector and Andrews counties. When completed in late 2014, the James Lake System will deliver residue gas into the El Paso Natural Gas pipeline and offer interconnections to multiple natural gas liquids pipelines in Ector County. "Ultimately, we expect the current James Lake project will be the first phase of a distributed and integrated gathering and processing system in the Permian Basin..." said Canyon President Michael Walsh.

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