LINN Energy, Inc. has announced that LINN Midstream, LLC has been renamed Blue Mountain Midstream LLC and entered into a definitive agreement with BCCK Engineering, Inc. to construct the Chisholm Trail Cryogenic Gas Plant. Blue Mountain is a wholly owned subsidiary of LINN Energy, Inc. and its assets include the Chisholm Trail midstream business in central Oklahoma.
Chisholm Trail is located in the heart of the prolific liquids-rich Merge/SCOOP/STACK play and has approximately 30 miles of existing gas gathering pipeline and approximately 60 MMcf/d of current refrigeration capacity. Infrastructure expansions are underway to add 35 miles of low pressure gathering, increase compression throughput and construct a new cryogenic plant to improve liquids recoveries.
Under the terms of the agreement, Blue Mountain will construct a highly efficient, state-of-the-art 225 MMcf/d cryogenic gas processing facility with a total capacity of 250 MMcf/d. Construction is underway and it is expected to be commissioned during the second quarter of 2018.
“Blue Mountain has the midstream assets and capability to generate significant value for LINN shareholders,” said Mark E. Ellis, President and Chief Executive Officer of LINN Energy. “Constructing the Chisholm Trail Cryogenic Plant meaningfully increases our growing midstream business. Our dedicated acreage in the Merge and this focused investment give us a tremendous competitive advantage. Our partnership with BCCK on this construction project is an example of how our talented team will pursue potential future midstream opportunities.”