Canyon Midstream Partners announces gas processing agreements with XTO Energy and Apache Corporation

Friday, June 6, 2014      
 
  • In addition, Canyon announced it has expanded its cryogenic gas processing plant in Ector County, Texas (the "James Lake Plant") from 70 million cubic feet per day (MMcf/d) to 100 MMcf/d by adding a 30 MMcf/d cryogenic turbo expansion train.

Canyon Midstream Partners, LLC announced it has entered into gathering and processing agreements with XTO Energy Inc. ("XTO"), a subsidiary of Exxon Mobil Corporation, and Apache Corporation ("Apache") for midstream services on Canyon's James Lake System.

In addition, Canyon announced it has expanded its cryogenic gas processing plant in Ector County, Texas (the "James Lake Plant") from 70 million cubic feet per day (MMcf/d) to 100 MMcf/d by adding a 30 MMcf/d cryogenic turbo expansion train. The James Lake Plant is part of Canyon's James Lake System, which currently consists of 60 miles of 12" trunkline and six field compressor stations providing low pressure gathering services to Ector, Andrews, Martin, Dawson and Gaines counties, Texas. When completed in late 2014, the James Lake System will deliver residue gas into the El Paso Natural Gas pipeline and deliver NGLs to the Sand Hills pipeline and the Chaparral pipeline in Ector County. Canyon is also developing Phase II of the James Lake System, which will consist of a second 100 MMcf/d cryogenic gas processing plant in Martin County and 60 additional miles of 12" trunkline, which will expand the system's service territory into Howard and Borden counties, Texas. Canyon expects Phase II to commence operations in the first half of 2015.

"We appreciate the interest that the producer community is demonstrating in our James Lake project, and Canyon is pleased to have the opportunity to provide midstream services to world-class companies such as XTO and Apache," said Michael Walsh, President and CEO of Canyon.

"Canyon's vision is to create a distributed and integrated midstream system in an area of the Permian Basin where the current and potential production volumes exceed the capacity of the existing infrastructure," Walsh added. "We measure our company's success by providing XTO, Apache and each of our customers with safe, reliable, operationally efficient and commercially responsive midstream services."


 

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XTO Energy Inc. Apache Corporation United States North America Operations Update Houston


This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More


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