Meritage Midstream commissions Powder River basin natural gas plant
DENVER – Meritage Midstream Services II, LLC announced that its subsidiary, Thunder Creek Gas Services, LLC, has completed commissioning of the Steamboat I processing plant in Converse County, Wyoming, west of the town of Douglas. The Steamboat plant more than doubles Meritage’s natural gas processing capacity in the Powder River basin.
“With the completion of the Steamboat plant, Meritage is building on Thunder Creek’s successful 16-year history of owning and operating strategic gathering, treating and processing assets in the Powder River Basin,” said Meritage Midstream President Nick Thomas. “The Steamboat plant will improve overall product recoveries, optimize system runtimes and maintain attractive system pressures. This additional processing plant will further Meritage’s goal of providing Wyoming’s premier oil and gas producers with access to the largest and most technologically advanced natural gas and NGL midstream footprints in this prolific basin.”
Meritage also announced it has entered into a significant, multiyear gathering and processing arrangement with a large independent oil and natural gas producer in the Powder River Basin. This contract provides Meritage with a minimum volume commitment from a high-quality, investment-grade counterparty supporting a substantial portion of the company’s gas gathering and processing capacity.
Meritage is one of the primary midstream providers in the Powder River basin with 380 MMcf/d of processing capacity, 1,600 miles of gas gathering pipeline, 120 miles of NGL pipeline and 168,000 of compression horsepower, all underpinned by acreage dedications from its existing customers in excess of 1 million acres. Currently, 47 percent of the rigs operating in the Powder River Basin are operating on acreage committed to Meritage Midstream’s Thunder Creek system.
The new cryogenic processing plant has a nameplate capacity of 200 MMcf/d. Additionally, the Steamboat I plant is located on a site large enough to accommodate two additional 200 MMcf/d cryogenic processing plants as future demand warrants expansion.
