New DJ Basin Midstream System to Be Constructed

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Outrigger Energy II LLC has started development of a tri-stream midstream system in Weld County, Colo. The system, which is anchored by long-term acreage dedications from Mallard Exploration, consists of wellhead natural gas gathering, a 60 MMcf/d cryogenic processing plant, field compressor stations, crude oil gathering, and produced water gathering.

The processing plant will deliver residue gas to Cheyenne Plains Pipeline, a 36-inch line that offers abundant access to both the Cheyenne Hub and to Mid-Continent markets. NGLs will also be delivered to the Overland Pass Pipeline operated by the Williams Companies and co-owned by ONEOK. In addition, multiple outlet opportunities exist for crude oil delivery, including Tallgrass’ Pony Express Pipeline system and NGL Energy’s Grand Mesa Pipeline system.

The permitting process for the project is currently underway, and the system is expected to be in service by early 2019.

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