Aspen Midstream, LLC Announces Construction of a Large Diameter Residue Gas Pipeline and Lean and Rich Gas Gathering Systems in Texas’ Austin Chalk Play
DALLAS--(BUSINESS WIRE)--Oct 11, 2018--Aspen Midstream, LLC (“Aspen”) today announced the company is constructing a large diameter residue pipeline and both a lean and a rich gas gathering system in the Austin Chalk play in Texas. Aspen’s Austin Chalk System is located in the Giddings Field. Producers drilling the Giddings Field are developing multiple stacked pay zones, including the Austin Chalk and Eagle Ford Shale formations. The Aspen Austin Chalk System is strategically located to ensure producer access to premium residue and NGL markets and spans the Giddings Field, including Washington, Fayette and Burleson counties, along with portions of Austin, Brazos, Colorado and Waller counties.
The system is supported by a combined total of approximately 150,000 acres of long-term dedications from multiple producers. Aspen is engaged in discussions with other producers about additional dedications. The system is expected to be in service by the third quarter of 2019.
“We are extremely excited about the Aspen Austin Chalk System and the opportunity to team up with premier producers in an area lacking adequate pipeline and processing capacity,” said Aspen Midstream CEO James Clarke. “We believe our system’s proximity to premium markets for both NGLs and natural gas takeaway will allow our producers to realize better netbacks and compete economically with other basins.”
Aspen Midstream is backed by growth capital from EnCap Flatrock Midstream. “The Aspen Midstream team has a customer-focused culture and outstanding commercial and operational skills,” said EnCap Flatrock Midstream Partner Sam Pitts, who is also a member of the Aspen board of directors. “Aspen is developing a top-tier system, and we look forward to helping the company grow its business in the Austin Chalk.”
The initial system will consist of more than 90 miles of 10- to 20-inch gas gathering mainlines, treating facilities, a state-of-the-art cryogenic processing plant with the capacity to process 200 million cubic feet of natural gas per day (MMcf/d), and a residue gas pipeline to the market hub at Katy, Texas.
Aspen Midstream expects to expand its Austin Chalk System by adding additional gathering, cryogenic processing and treating facilities as necessary and is engaged in discussions with the area’s producers to determine future needs.
About Aspen Midstream, LLC
Headquartered in Dallas, Aspen Midstream is an independent energy company launched in 2017 to fill strategic voids in the midstream sector. Aspen Midstream creates value for producers by offering a full-service portfolio of midstream solutions. Capabilities include natural gas gathering, processing, compression and treating; condensate stabilization; crude oil gathering and terminaling; and produced-water gathering. Aspen is backed by EnCap Flatrock Midstream. Visit www.aspenmidstream.com for more information.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of nearly $9 billion from a broad group of prestigious institutional investors. EnCap Flatrock Midstream is currently making commitments to new management teams from EFM Fund IV, a $3.25 billion fund. For more information please visit www.efmidstream.com.
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KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: ENERGY OIL/GAS PROFESSIONAL SERVICES FINANCE
SOURCE: Aspen Midstream, LLC
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PUB: 10/11/2018 10:15 AM/DISC: 10/11/2018 10:15 AM