Stakeholder Midstream to expand in Permian Basin’s San Andres

Stakeholder Midstream LLC will build a new natural gas gathering system in the Permian Basin to serve producers working in the Horizontal San Andres. The gas gathering solution includes low-pressure gathering, liquids handling, sour gas treating, cryogenic processing, and nitrogen rejection capabilities. In conjunction with its new natural gas system, Stakeholder also will expand its existing San Andres Crude Gathering System. These new assets are supported by long-term contracts and dedications of more than 100,000 acres from Horizontal San Andres producers.

Stakeholder’s comprehensive gas gathering, treating and processing system will include low-pressure sour gas gathering lines across Yoakum County, Texas, and into Lea County, New Mexico. To support its expanded gathering footprint, Stakeholder will construct a treating and processing facility in Yoakum County. The new facility will include front-end liquids handling, an amine treater and acid gas injection well, a cryogenic processing plant with the capacity to process 60 million cubic feet per day, and a nitrogen rejection unit.

Stakeholder’s gas system will be fully operational in the third quarter of 2018. Stakeholder currently is working with producers regarding expansions into Roosevelt, Chaves, and Eddy counties in New Mexico and Cochran and Gaines counties in Texas and plans to announce significant expansions to the system backed by new acreage commitments by year-end.

Stakeholder also will make substantial expansions to its San Andres Crude Gathering System in Yoakum County. The crude system was fully commissioned on May 1, 2017, and currently consists of approximately 90 miles of gathering pipelines, a crude oil storage terminal and multiple downstream pipeline connections. The expansion will include additional gathering lines, pump stations and additions to storage capacity at Stakeholder’s crude terminal. The acquisition of rights of way is underway, and the new gathering lines are expected to come into service in the first quarter of 2018. Stakeholder also is working with several producers to expand the gathering system into surrounding counties.

San Antonio, TX-based Stakeholder is backed by venture capital commitments from EnCap Flatrock Midstream.

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