Outrigger Energy LLC is expanding its midstream capabilities in the Permian Basin of Texas with the addition of a natural gas gathering and processing, and crude oil gathering system. Outrigger plans to construct, own and operate the system, initially located in Howard, Borden and Martin counties, and anchored by long-term acreage dedications from independent producer Tall City Exploration. The system would include more than 120 miles of gas gathering lines, 75 miles of crude oil gathering lines and related wellhead/measurement facilities. It would also include a 30-mile raw gas gathering header feeding a gas processing facility in Martin County and, initially, three field compressor stations. Outrigger would provide customers on the system with access to multiple takeaway pipelines for gas, liquids and crude oil, with the oil system also providing access to local markets. Initial deliveries are expected to begin during the fourth quarter.
With $300 million in equity commitments, Oryx Midstream Services LLC is embarking on a phased buildout of midstream infrastructure in the Permian Basin, focusing first on the Delaware Basin in Texas and New Mexico. Midland, TX-based Oryx has signed long-term, fee-based contracts with three unnamed producers -- one large, publicly traded independent company and two private Midland-based companies -- to support their drilling programs in the northern Delaware. The three companies have dedicated to Oryx production from wells drilled within a 340,000-acre area in Lea County, NM. Oryx plans to construct up to 60 miles of rich gas gathering pipeline and up to 80 miles of crude oil gathering pipeline Construction is expected to begin in April and would be conducted in phases based on customer needs. The pipeline systems would serve production from multiple formations including the Second Bone Spring, Third Bone Spring, Avalon/Leonard and Wolfcamp. Oryx also plans to pursue third-party volumes inside the acreage dedication area and more broadly across the basin. Oryx has equity commitments from Quantum Energy Partners, Post Oak Energy Capital, Wells Fargo Energy Capital, Oryx management and other private investors.
Nuevo Midstream LLC's 200 MMcf/d Ramsey III cryogenic processing plant is now online at the Ramsey processing facility in Reeves County, TX, bringing the company’s cryogenic processing capacity to 300 MMcf/d. The Ramsey system includes amine treating capacity of 1,800 gpm, more than 270 miles of low- and high-pressure gathering lines, four field compressor stations and interconnections into the El Paso Natural Gas and DCP Sandhills pipelines. The company is engineering its next two plant expansions: Ramsey IV and V. Ramsey IV would include a 200 MMcf/d cryogenic processing plant and a 1,000 gpm amine plant. Nuevo expects to bring the Ramsey IV plant online in the third quarter of 2015, bringing total cryogenic capacity to 500 MMcf/d and amine treating capacity to 2,800 gpm. Ramsey V is expected to be operational in summer 2016 and would include a 400 MMcf/d cryogenic processing plant and a 1,000 gpm amine treating plant, bringing Nuevo's cryogenic capacity to 900 MMcf/d and amine treating capacity to 3,800 gpm.