Houston-based Candor Midstream LLC has begun commercial service on its 100-mile, 20-inch diameter natural gas gathering system, which stretches from Carter County, OK, to a market area near processing facilities in North Texas near Bridgeport.
Named for the South Central Oklahoma Oil Province, or SCOOP, the SCOOP-to-North-Texas Rich Gas Gathering Pipeline System, aka SCOOP-NORTHTX, has initial operational capacity of up to 200 MMcf/d.
“The SCOOP-NORTHTX pipeline debottlenecks the region and offers rich gas gathering solutions and expansion opportunities that are specifically tailored to meet producers’ individual needs in this unique area of Oklahoma and Texas,” said Candor CEO Darrel L. Hagerman.
With the expansion of southern Oklahoma producers’ access to processing and natural gas liquids markets in north Texas, producers could garner higher netbacks, the company said.
Candor bought the system in January from an undisclosed party, initiating a series of upgrades that included constructing multiple risers for commercial rich gas receipts, equipment upgrades and pipeline monitoring capabilities.
Oklahoma exploration and production companies have struggled with crude and gas takeaway constraints as infrastructure has failed to keep pace with rising production in the Anadarko Basin. The bottleneck has helped spur Cheniere Energy Inc.’s 1.44 Bcf/d Midship Pipeline and Oklahoma City-based Enable Midstream Partners LP’s 400 MMcf/d Project Wildcat, which also brings Oklahoma gas to North Texas. Midship is expected to come online by the end of the year, and Project Wildcat went into service during the second quarter.
The pressure of the oil and gas bottleneck, market price volatility and efficiency gains have contributed to a tumbling rig count in Oklahoma. Oklahoma dropped 10 rigs from its total during the week ended Sept. 20, falling to 66 active units, less than half of the 136 units active in the year-ago period, according to data from Baker Hughes, a GE Company.
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