Tall Oak Midstream III Begins Open Season for Arkoma Residue Capacity Pipeline
Tall Oak Midstream III, LLC today launched a non-binding open season to secure prospective shippers for the Arkoma Residue Capacity (ARC) Pipeline, a proposed 80-mile natural gas residue pipeline that will connect to both Tall Oak’s planned Panther Creek Natural Gas Processing Plant in Hughes County, Oklahoma, and a planned receipt point off the Enable Gas Transmission line.
The ARC Pipeline will transport residue gas from these two receipt points to multiple interconnects to the south near Bennington, Oklahoma, providing producers and other shippers in Oklahoma’s burgeoning Arkoma STACK play with downstream market optionality and the opportunity to maximize producer netbacks. The planned receipt point off the Enable Gas Transmission line also will alleviate capacity constraints for residue gas from the STACK, SCOOP and Merge plays located in central and western Oklahoma by providing this gas a path to Bennington. The project is designed to expand Tall Oak’s previously announced Arkoma STACK system, which currently serves more than 150,000 dedicated acres. The company’s Arkoma STACK system currently includes approximately 90 miles of gathering pipeline, two compression facilities, a 5,000 bpd stabilizer, an associated slug catcher and condensate storage facilities.
Construction of the ARC Pipeline is projected to begin in the second quarter of 2019, pending regulatory approval, with an in-service target by the end of 2019.
The Panther Creek Plant is a 200 MMcf/d cryogenic natural gas processing plant expected to come into service by the first quarter of 2019. Planned interconnects from the Panther Creek Plant already include Enable Oklahoma Intrastate Transmission, Enable Gas Transmission and the Arkoma Connector Pipeline. Proposed interconnects to the south located near Bennington include the Midcontinent Express Pipeline, Gulf Crossing Pipeline Company and Natural Gas Pipeline Company of America. In addition to the Panther Creek Plant, Tall Oak expects to add 150 miles of gathering lines and two additional compressor stations by the end of 2018.
“We are seeing a very rapid rise in production in this region and a related increase in demand for takeaway capacity. The ARC Pipeline will connect the Arkoma STACK with premium downstream markets,” said Tall Oak Chief Commercial Officer Carlos Evans. “We are pleased to announce this project to debottleneck existing pipeline routes and provide shippers with the optionality they need to access multiple markets.”
The open season for the ARC Pipeline began at 9:00 am Central Time on March 6, 2018, and concludes at 5:00 pm Central Time on March 30, 2018.
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