EagleClaw advances midstream growth plans in Delaware basin

EagleClaw Midstream Ventures LLC, Midland, Tex., has entered a deal to acquire Houston-based PennTex Midstream Partners LLC subsidiary PennTex Permian LLC as part of an ongoing strategy to expand gathering, compression, treating, processing, and transportation services for producers in the Permian’s Delaware basin.

With definitive agreement between the parties now in place, EagleClaw plans to complete the transaction to take full ownership of PennTex Permian by the end of this year’s third quarter, EagleClaw said.

As part of the deal, EagleClaw will acquire all of PennTex Permian assets, which—primarily in Reeves County, Tex., and supported by long-term dedications of more than 75,000 acres from leading producers in the region—include a 60-MMcfd cryogenic natural gas processing plant, 90 miles of gathering pipeline, and 35 miles of condensate pipeline.

Following the acquisition, EagleClaw plans to connect the PennTex system to its own existing East Toyah system, bringing the company’s processing capacity to 120 MMcfd and total gathering pipeline to more than 200 miles, all of which will be connected by nine field compressor stations with a total of 20,000 hp of low- and high-pressure compression.

The combined systems will serve producers in the Delaware basin’s stacked pay zones, including the Upper and Middle Wolfcamp, Bone Spring, and the Avalon shale formations, EagleClaw said.

The company also confirmed it has broken ground on installation of its previously announced Toyah II cryogenic gas processing plant at its East Toyah processing complex in Reeves County, the site at which it recently commissioned the 60-MMcfd Toyah I gas plant (OGJ Online, May 9, 2016).

Equipped with Honeywell UOP Russell cryogenic gas processing technology, the 200-MMcfd Toyah II plant will meet increased demand for NGL recovery by local producers, including Silverback Exploration LLC, which recently drilled wells in the region with initial production rates of 7 MMcfd of natural gas and 820 b/d of crude oil, said EagleClaw.

Due for startup later this year, the Toyah II plant will lift EagleClaw’s total processing capacity in the region to 320-MMcfd.

An 18-mile NGL line connects the East Toyah Processing Complex to Lone Star’s West Texas Gateway Pipeline, which transports NGLs to the market center at Mont Belvieu, Tex. The East Toyah complex also is connected to Kinder Morgan Inc.’s El Paso 1600 Pipeline, and by October will have an additional connect into Oneok’s WestTex transmission system, an intrastate natural gas pipeline system that connects into the Roadrunner Gas transmission pipeline, Phase 1 of which now serves El Paso and Mexico.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Making DDoS Mitigation Part of Your Incident Response Plan: Critical Steps and Best Practices

Like a new virulent strain of flu, the impact of a distributed denial of service (DDoS) attack is...

The Multi-Tax Challenge of Managing Excise Tax and Sales Tax

To be able to accurately calculate multiple tax types, companies must be prepared to continually ...

Operational Analytics in the Power Industry

Cloud computing, smart grids, and other technologies are changing transmission and distribution. ...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...