Great Salt Plains Midstream (GSPM) has acquired the midstream assets of Thunderbird Midstream in the Oklahoma STACK Play, which includes a cryogenic natural gas plant and a 54.7km long natural gas pipeline gathering system.
Image: Pipeline system. Photo: courtesy of supakitmod/Freedigitalphotos.net.
Financial terms of the deal were not revealed by the two midstream companies, which are both headquartered in Oklahoma City.
The former Thunderbird Midstream cryogenic natural gas plant, which is now owned by GSPM, has a processing capacity of 20 million cubic feet of natural gas per day (MMcf/d). Commissioned in 2016, the gas processing plant, which is located on more than 40 acres, can be expanded further to cope up with increased demand, said GSPM.
The company said that the acquired midstream assets offer immediate processing capacity with additional firm market outlets for residue and natural gas liquids (NGLs).
GSPM said that the acquisition consolidates the build out of its infrastructure in the STACK play of northwestern Oklahoma.
GSPM CEO Rusty Rains said: “We are adding to our system to serve multiple producers in the northwest portion of the STACK.
“We are now offering immediate natural gas processing services. The additional gathering pipeline from Thunderbird extends our system west into Major County, providing producers with low pressure gathering and additional residue market optionality.”
GSPM is also constructing a cryogenic processing facility dubbed Silver Lake Plant in Major County, Oklahoma. Silver Lake Plant will have an initial processing capacity of 70MMcf/d, which can be expanded in the future up to 220MMcf/d.
The company is also laying out 144.8km of natural gas gathering pipelines along with various compressor stations. GSPM anticipates the new facilities to be commissioned in July.
The company was recently formed in December 2017 as a joint venture between MVM Midstream and Chisholm Midstream. MVM Midstream, in turn, is an entity formed with Energy Spectrum Partners VII and MVP.
GSPM was created to expand crude oil and gas infrastructure and offer more options for producers in the STACK play.