Williams Partners and Crestwood Equity Partners said that they will undertake an expansion project related to the Jackalope Gas Gathering System (JGGS) and associated Bucking Horse gas processing facility in the Powder River Basin (PRB) Niobrara Shale play in Wyoming.
The partners expect the expansion project to increase the processing capacity of JGGS to 345 million cubic feet per day (MMcf/d) by the end of 2019 to address an increased customer demand in PRB.
As part of the project, the capacity of the Bucking Horse gas processing facility, located in Converse County, will be increased from 120MMcf/d to 145MMcf/d by the end of this year.
There are also plans to introduce a second plant to JGGS with a capacity of 200MMcf/d as part of the expansion, said the partners.
The expansion project has been driven by the recent discovery of various productive oil-saturated formations in the Powder River Basin. With 19 rigs currently operating in the basin target multiple formations, Williams Partners and Crestwood Equity Partners predict an increasing requirement for wellhead services and midstream infrastructure in the basin.
By 2021, the partners expect volumes to reach the full capacity of the expanded Jackalope System.
Crestwood executive vice president and chief operating officer Heath Deneke said: “The Williams and Crestwood joint venture is uniquely positioned to be the leading midstream provider in the Powder River Basin and our system expansions will position the joint venture to provide continued exceptional service to Chesapeake and other producers in the basin.”
The JGGS and the associated Bucking Horse gas processing plant are owned 50/50 by Williams Partners and Crestwood Equity Partners. The gathering and processing facilities deliver services under a long-term, fee-based agreement with Chesapeake Energy.
Williams West operating area senior vice president Walter Bennett said: “The expansion we’re announcing today positions us for additional and continued growth in a growing basin with strong upstream returns.
“Our gathering and processing volumes for the JGGS have more than doubled since the start of 2017; increasing the output of this system better positions us to meet the upstream development needs of the Niobrara, which enables us to enhance the midstream services we provide to Chesapeake – increasing our ability to meet the growing demands of our customer.”