ARM Midstream, a wholly owned subsidiary of Asset Risk Management (ARM), is partnering with Highbridge Principal Strategies LLC to build a cryogenic processing plant, natural gas gathering system, and crude oil gathering system in Oklahoma’s STACK play.
The project will provide area producers with the infrastructure and takeaway capacity required to grow production in a highly competitive environment. The initial capital investment for the Kingfisher Midstream Project is estimated at $200 million.
Plans for the Kingfisher Midstream system include more than 100 miles of low- and high-pressure gas gathering pipelines, more than 15,000 horsepower of compression, and a newly constructed cryogenic processing facility with initial processing capacity of 60 million cubic feet of gas per day. The system design is configured strategically to serve STACK producers in Kingfisher County, as well as Blaine, Logan, Garfield, and Canadian counties via additional plant expansions, a high-pressure gathering backbone, and centralized low-pressure delivery points.
The Kingfisher Midstream Project will also include a crude oil gathering system that will provide producers with streamlined operations and superior pricing optionality. The crude gathering system will connect in-field production to Cushing, Oklahoma, and will also include truck-loading facilities and storage for 50,000 barrels of crude oil.
The newly constructed facilities will provide area producers with a midstream infrastructure alternative and will connect the basin to takeaway markets in the area.
The Kingfisher Midstream Project is expected to begin gathering operations in the fourth quarter of 2015 and the processing plant will be in service by the first quarter of 2016. Planning for future system expansion is under way and updates will be shared as the project progresses.