Meritage Midstream Services II LLC reports that operations on the first 108-mile leg of the Thunder Creek NGL pipeline will begin in January 2015. The pipeline will be owned and operated by Thunder Creek NGL Pipeline LLC, a wholly owned subsidiary of Meritage.
The 108-mile pipeline serves producers in Wyoming’s prolific Powder River Basin and consists of 22 miles of newly constructed pipeline and an additional 86 miles secured through a long-term lease from Phillips 66 (NYSE: PSX). The pipeline has an initial capacity to transport 15,000 barrels per day (bbls/d). Meritage expects to expand the pipeline’s capacity to 30,000 bbl/d as shipper demand increases.
The pipeline originates at the 50 Buttes Natural Gas Processing Complex near Gillette, Wyoming, and terminates at an interconnect with Phillips 66’s Powder River Pipeline near Douglas, Wyoming. The Phillips 66 Powder River Pipeline delivers natural gas liquids to Phillips 66’s fractionation and refining complex near Borger, Texas. The 50 Buttes Plant is owned by Thunder Creek Gas Services LLC, also a wholly owned subsidiary of Meritage.
Meritage will also begin construction of a 140-mile extension of the NGL pipeline in early 2015. The 140-mile extension will include an interconnect near Cheyenne, Wyoming, into the Overland Pass Pipeline Co.’s 760-mile pipeline that provides NGL deliveries to the Mid-Continent market center in Conway, Kansas. This extension is expected to come into service during the first quarter of 2016.