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TEAK Midstream, L.L.C. announced the company has begun operation of more than
250 miles of natural gas gathering and residue delivery pipelines and the
adjoining Silver Oak 200 million cubic feet per day (MMcf/d) cryogenic gas
processing plant in South Texas to better serve gas producers operating in the
Eagle Ford Shale play and surrounding area. TEAK also announced it recently
executed long-term gathering and processing agreements with Comstock
Resources, Inc.
and another major Eagle Ford Shale producer that
support the facilities. TEAK had signed contracts with anchor shippers
Talisman Energy USA Inc. and Statoil Natural Gas LLC earlier this year, as
previously announced. TEAK plans to expand the gas processing capacity on its
system by 200 MMcf/d by the first quarter of 2014 based on volume commitments
to date and increasing demand to process liquids-rich gas from the Eagle Ford
play, as well as from the Buda, Pearsall, Olmos and Escondido formations.
Early indicators of the Silver Oak plant's operational performance show that
the facility is capable of generating some of the highest recoveries of
natural gas liquids (NGL) from producers' gas streams in South Texas. Silver
Oak, located near the community of Pettus, is equipped with state-of-the-art
technology and equipment designed specifically to handle higher concentrations
of liquids-rich gas.
TEAK's new facilities include two inlet high-pressure gas gathering systems.
One system consists of 178 miles of 24-inch and 16-inch diameter pipeline with
a capacity of approximately 600 MMcf/d. This system originates in Dimmit
County on the western edge of the Eagle Ford play and moves rich gas
production east through Webb, La Salle, McMullen and Live Oak counties to
TEAK's Silver Oak plant in Bee County. TEAK jointly owns this gathering system
with TexStar Midstream. The second system consists of 22 miles of 20-inch
diameter pipeline with a capacity of approximately 400 MMcf/d. This TEAK-owned
gathering system moves rich gas production from the prolific Karnes County
area to the Silver Oak plant.
TEAK's new pipeline system also includes approximately 57 miles of 20-inch
diameter residue gas pipeline that will deliver dry gas from the Silver Oak
plant to six major downstream intrastate and interstate pipelines – Tennessee
Gas Pipeline, Channel, Kinder-Tejas, Transco, Texas Eastern and NGPL.
Additionally, TEAK has constructed approximately three miles of 12-inch
diameter NGL pipeline that transport liquids recovered at the Silver Oak plant
to the DCP Sand Hills NGL pipeline. The Sand Hills pipeline ultimately
delivers NGL to the Mont Belvieu fractionation complex and other fractionation
facilities along the Gulf Coast.
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