Midstream energy company Outrigger Energy has agreed to provide long-term natural gas gathering and processing services to support XTO Energy’s production in the Williston Basin, North Dakota, US.
Under the agreement, Outrigger will construct, own and operate the 70-mile, 20in and 24in-diameter rich gas pipeline from eastern Williams County to a new 250MMcf/d cryogenic gas processing plant located to the west of the Williston Basin.
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A plant expansion of up to a further 200MMcfd to enable a total gas processing capacity of 450MMcfd is also being considered for the project. The plant will offer ethane recovery and rejection capabilities that would offer access to the Northern Border Pipeline system for residue gas and the Oneok pipeline system for natural gas liquids (NGL).
Plans also include the possible addition of future NGL fractionation facilities to provide finished products for local markets.
Outrigger Energy CEO Dave Keanini said: “Routing of the gathering line will provide other Williston Basin operators access to much-needed gathering and cryogenic processing capacity. Moreover, this additional midstream capacity for gas production north of the Missouri River allows the State of North Dakota to make strides towards its goal of minimising gas flaring in the Basin.
“Over the last six years, the Outrigger team has achieved an excellent track record of project execution, safe and reliable operations and customer service in the Delaware, Midland, Powder River and DJ Basins, and we couldn’t be more excited for the opportunity to do the same in North Dakota.”
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By GlobalDataWith a primary geographical focus in the Rocky Mountain region, Outrigger Energy is supported by equity commitments from NGP Energy Capital Management and an entity affiliated with Brion G Wise.
The company’s current focus is on liquids-rich natural gas and crude oil infrastructure in the DJ Basin of Colorado and Wyoming, as well as the Williston Basin.
