Aspen Midstream to Construct Residue Gas Pipeline in Austin Chalk Play

Aspen Midstream the company is constructing a large-diameter residue pipeline, and both a lean and a rich gas gathering system in the Austin Chalk play in Texas. Producers drilling in the Giddings Field are developing multiple stacked pay zones, including the Austin Chalk and Eagle Ford Shale formations.

The initial system will consist of more than 90 miles of 10- to 20-inch gas gathering mainlines, treating facilities, a cryogenic processing plant with the capacity to process 200 MMcf/d of natural gas, and a residue gas pipeline to the market hub at Katy, Texas.

The system is supported by about 150,000 acres of long-term dedications from multiple producers, and Aspen said it is in discussions with other producers about additional dedications. The system is expected to be in service by the third quarter of 2019.

“We believe our system’s proximity to premium markets for both NGLs and natural gas takeaway will allow our producers to realize better netbacks and compete economically with other basins,” said Aspen Midstream CEO James Clarke.

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