Evolution Midstream has started construction on a new natural gas processing plant dubbed as Jewell Facility in Converse County in the US state of Wyoming.
The natural gas processing plant is located in the center of the Powder River Basin (PRB) near the company’s existing infrastructure.
Jewell Facility will initially have a processing capacity of 40 MMcf/day, which will be ramped up to become 100 MMcf/day in 2019 to address the increasing needs of producers in the region, said the company.
Evolution Midstream CEO Raj Basi said: “The Powder River Basin continues to emerge as one of the most attractive oil plays in the Lower 48 and the Jewell Facility further solidifies Evolution’s leading position in the region.
“The plant’s strategic location and innovative technology will differentiate our offering in the basin while allowing our team to better anticipate and reliably provide for our customers’ immediate and long-term gas-gathering and processing needs.”
Slated to enter into operations in the fourth quarter of 2018, the natural gas processing plant will have a 4,500-barrel per day fractionation and stabilization train.
According to Evolution Midstream, the train will be designed to extract purity propane and for delivering stabilized condensate that will be sold in both local and interstate markets.
The Colorado-based midstream oil and gas company will also provide residue gas connections to MIGC, WIC and interstate pipelines that connect to the Cheyenne Hub.
Evolution Midstream commercial development senior vice president P.K. Dandapani said: “The Jewell Facility’s state of the art technology and best-in-basin NGL recoveries will not only create substantial value from superior netbacks, it will provide critical flow assurance for our producer customers.
“Our team remains focused on project execution to improve and expand our asset base to meet the growing demand of producers in the basin.”
Established in 2015, Evolution Midstream is backed by a funding of $300m from Encap Flatrock Midstream.
Last year, the US midstream company completed acquisition of the Rowdy Gas Gathering System from Lucid Energy Group. The Rowdy Gas Gathering System comprises 1,609km long gas gathering lines and 43,700 horsepower of compression.