Seminole Energy Services LLC has begun talks with producers about whether to develop new gathering, treatment and processing facilities in the Big Sandy region, which contains one of the largest gas fields in the Appalachian Basin.
Seminole, which serves more than 350 producers across its service area, said its initial efforts will focus on constrained and shut-in gas supplies as well as areas of new production growth in eastern Kentucky and West Virginia. The Big Sandy gas field is one of the largest gas fields in the Appalachian Basin, covering more than 1.5 million acres.
“Capacity constraints, supply growth and aging regional pipelines are bottlenecking valuable resources,” said Seminole President Robert B. Rosene Jr. “Reliable and competitively priced midstream assets and services are needed in the region today. Seminole has the experience, capital and management structure to execute quickly on projects tailored to producers’ needs.”
Brent McDaniel, Seminole vice president, said “specific projects and potential developments” are being discussed now. “Based on the feedback we have received, we believe that producers are looking for cost-effective options to move their existing production to liquid market points and to support their ongoing development programs.”
In October Seminole and NGAS Resources Inc. agreed to jointly construct and own a 25,000 MMcf/d gas processing plant near Rogersville, TN, and a separate gas treatment facility in northern Christian County, KY. According to McDaniel, both projects are under construction and are on schedule for completion by year’s end.
Seminole has a total customer base of 50,000 and average sales of 600 MMcf/d.
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