|WEX's Grady Plant with two trains combining to provide 210 MMcfd of cryogenic processing and amine treating capacity. (Photo: Business Wire)|
MIDLAND, Texas & ARLINGTON, Texas--(BUSINESS WIRE)--Aug 26, 2016--Priority Power Management, LLC (“PPM”), a Texas-based leading independent energy management and consulting services firm, has delivered an end-to-end electric energy solution to Woodford Express, LLC (“WEX”), a subsidiary of Xplorer Midstream LLC (“Xplorer”), for a natural gas processing project in Grady County, Oklahoma (the “Grady Plant”).
WEX’s Grady Plant provides natural gas processing services in the South Central Oklahoma Oil Province (“SCOOP”) shale play. The design includes 210 million cubic feet per day (“MMcfd”) of natural gas processing capacity from two trains of 60 MMcfd and 150 MMcfd, with accommodations for two additional 200 MMcfd processing trains in the future.
Important considerations in the early planning stages were the availability of sufficient electrical infrastructure to serve the initial and future electrical loads of the Grady Plant, and the cost of receiving electric service – both from an upfront capital expense and ongoing operating expense perspective.
PPM developed sophisticated electric rate models to analyze estimated future operating and upfront capital expenses for several build out and operational scenarios, from which a multi-phase plan was conceived. PPM consulted with WEX with respect to the negotiation of agreements for electric service with Public Service Company of Oklahoma (“PSO”), a subsidiary of American Electric Power (NYSE: AEP), to provide electric service to the Grady Plant initially from a 25 kV primary distribution feeder, then ultimately from a new 138 kV transmission line.
Subsequently, WEX expanded PPM’s scope to include engineering, procurement and construction (“EPC”) services to develop the electrical infrastructure WEX would need to receive service from PSO and power the Grady Plant. PPM delivered a full turnkey EPC solution that included a 25 kV primary distribution system with capacitors integrated for power factor correction, and a 120 MVA 138 kV/25 kV high voltage substation. The substation was designed with full transformation and breaker redundancy for maximum reliability and was energized this past week.
“We relied heavily on Priority Power Management’s expertise in developing and delivering a robust and cost effective electrical energy solution for the Grady Plant,” said Patrick Myers, Chief Operating Officer of Xplorer. “We value our relationship with them and are pleased that they were able to complete the substation project ahead of schedule and under budget.”
“This engagement truly was a team effort requiring a very close working relationship between WEX, its plant contractors and PSO,” said John Bick, managing principal of PPM. “We are extremely pleased with the results and cannot express enough our appreciation for the trust and confidence that WEX placed in us.”