Azure Midstream Energy, LLC ("Azure," or "Company"), a midstream natural gas gathering and processing company based in Houston, Texas announced the completion and startup of its Fairway gas processing plant located in San Augustine County, Texas.
The James Lime formation in the Haynesville Shale area in East Texas has rich associated natural gas that requires processing to remove the heavy end of the produced gas stream. Volume growth for the central portion of Azure's gathering system, where many of the company's customers are actively drilling, has resulted in the need for additional gas gathering infrastructure in the area.
The Fairway plant, had an in-service date of March 17, 2014 and will recover natural gas liquids from natural gas produced from the James Lime formation and return the dry residue natural gas into Azure's East Texas Gathering System for delivery into interconnections with Gulf South's 42-inch pipeline, CenterPoint Energy Gas Transmission's 42-inch Line near Carthage, Gulf South's 30-inch pipeline at Milam, and Azure's interconnection with the facilities of Natural Gas Pipeline Company of America in Nacogdoches County, Texas. Natural gas liquids recovered by the Fairway plant will be trucked to fractionation facilities located in East Texas, South Louisiana, or Mont Belvieu, Texas, for separation into purity products.
"The start-up of the Fairway plant is another achievement in the already rapid success of Azure Midstream," stated I.J. "Chip" Berthelot, II, President of Azure Midstream. "Since the contemporaneous combination of TGGT Holdings, LLC and East Texas Gathering, LLC, we have made significant strides in executing on our commercial plan in our core asset base, and look to build on this momentum over the coming months."
Azure has an aggressive growth plan based on a combination of new development, bolt-on acquisition of gathering and processing businesses, and providing world-class midstream solutions for its customer's. Azure's executive management team has nearly 150 years of midstream experience, coupled with a strong track record of successful execution.