MVM Midstream and Chisholm Midstream have formed a joint venture (JV) dubbed Great Salt Plains Midstream (GSPM) to develop additional crude and gas infrastructure to the STACK Play of Central Oklahoma.

While MVM Midstream is an entity formed between Energy Spectrum Partners VII LP and MVP Holdings, Chisholm Midstream is a subsidiary of Chisholm Oil & Gas.

GSPM will not only expand crude oil and gas infrastructure but also offer more options for producers in the fast growing STACK play.

The expansion would include further investments in STACK crude transportation and planned construction of a natural gas gathering and processing system.

According to MVP, the natural gas STACK platform will comprise placement and build out of a cryogenic processing facility in Major County.

The Silver Lake Plant will have an initial capacity to process up to 70 million cubic feet of natural gas per day (MMcf/d). It will be designed to have an expansion capacity of up to 220MMcf/d.

The facility, which will have more than 209km of gas gathering lines and a number of compressor stations, is anticipated to begin operations in the second quarter of 2018.

Additionally, the JV will enable its producer customers in the area various marketing options. These would include a direct line into the Cushing crude oil complex.

MVP president and CEO Gary Navarro said: “Mid-continent producers continue to actively invest in acreage and drilling in the STACK area extending north and west.

“MVP and our investment partners are dedicated to providing the full range of midstream services to our producer community to support this crucial development of energy resources.”

For the JV, MVP will contribute the 185km Great Salt Plains Pipeline from Cherokee to Cushing in Oklahoma along with its other recently acquired assets from affiliates of JP Energy Development.

GSPM will have planned capital expenditures in surplus of $250m.

The Great Salt Plains Pipeline is backed by long-term acreage dedications and throughput commitments from active producers in Oklahoma along with crude marketing firms.

MVP has revealed that there are plans to expand the initial crude gathering and transportation capacity of Great Salt Plains crude system to up to 40,000BPD.