Stakeholder Midstream, LLC today announced it will build a new natural gas gathering system in the Permian Basin to serve producers working in the Horizontal San Andres, and significantly expand its existing San Andres Crude Gathering System. These new assets are supported by long-term contracts and dedications of more than 100,000 acres from Horizontal San Andres producers.
Stakeholder’s comprehensive gas gathering, treating and processing system will include low-pressure sour gas gathering lines across Yoakum County, Texas, and into Lea County, New Mexico. To support its expanded gathering footprint, Stakeholder Midstream will construct a state-of-the-art treating and processing facility in Yoakum County. The new facility will include front-end liquids handling, an amine treater and acid gas injection well, a cryogenic processing plant with the capacity to process 60 million cubic feet per day, and a nitrogen rejection unit.
The system is expected to be fully operational in the third quarter of 2018. In addition, the company is currently working with producers regarding expansions into Roosevelt, Chaves and Eddy counties in New Mexico, and Cochran and Gaines counties in Texas, with an announcement expected by year-end.
Stakeholder Midstream’s expansion of its San Andres Crude Gathering System will include additional gathering lines, pump stations and additions to storage capacity at the company’s crude terminal. The acquisition of rights of way is underway, and the new gathering lines are expected to come into service in the first quarter of 2018. Stakeholder Midstream also is working with several producers to expand the gathering system into surrounding counties.