Williams Partners and Crestwood Midstream Partners Announce Commissioning of Bucking Horse Gas Processing Plant in Niobrara Shal

abarrelfullabarrelfull wrote on 13 Feb 2015 07:09
Tags: crestwood n-america pipelines usa williams

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Williams Partners L.P. (NYSE: WPZ) and Crestwood Midstream Partners L.P. (NYSE: CMLP) today announced the commissioning of the Bucking Horse gas processing facility located in Converse County, Wyoming, adding 120 million cubic feet per day (“MMcf/d”) of processing capacity in the Powder River Basin (“PRB”) Niobrara Shale play.

The Bucking Horse plant, along with the Jackalope Gas Gathering System (JGGS), is owned through a 50/50 joint venture between Williams Partners and Crestwood Midstream Partners.

The gathering and processing facilities provide services under a long-term, fee-based agreement with Chesapeake Energy Corporation (“Chesapeake”). The Jackalope System includes approximately 184 miles of low pressure gathering pipelines supported by a 311,000-acre area of dedication from Chesapeake. The joint venture expects volumes through the Bucking Horse plant to significantly ramp-up throughout the remainder of the first quarter of 2015 utilizing much of its capacity as existing rich gas production is re-directed from third-party processing facilities and previously curtailed volumes along the Jackalope System begin to flow.

“The Bucking Horse Plant positions us for additional and continued growth in the Niobrara Shale,” said Walter Bennett, senior vice president, Williams’ West operating area. “Adding this asset to the Williams portfolio enhances the services we provide to Chesapeake. It also expands the existing Williams footprint in Wyoming that includes over 2.2 billion cubic feet per day (“bcf”) of combined processing capacity at Opal and Echo Springs. Williams’ extensive operating expertise in Wyoming will allow JGGS to provide valuable midstream
services focused on meeting customer needs. I am very appreciative of the great work by our entire Wyoming and Niobrara Shale team in coming together to get this plant up and running.”

Heath Deneke, president, natural gas business unit of Crestwood, commented, “We are pleased to complete the Bucking Horse plant and provide additional processing capacity to the underserved PRB Niobrara play. We look forward to working with Williams as our joint venture partner and providing Chesapeake with reliable gathering and processing services. The completion of the Bucking Horse plant adds a substantial component to Crestwood’s portfolio of fee-based contracts and provides additional opportunities for long-term infrastructure development as production from the emerging PRB Niobrara continues to increase.”

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