Caballo Energy to build cryogenic processing plant in US

Caballo Energy has unveiled plans to build a new cryogenic processing plant near Carmen, Oklahoma, in the US.

The plant, located on a 160-acre site, will cater to the expanding natural gas production in the liquids-rich Mississippi Lime and Cana Woodford Shale plays.

Carmen gas processing plant will have the capacity to process 60 million cubic feet of natural gas per day, bringing Caballo’s processing capacity in the region to approximately 100 million cubic feet per day.

Caballo president and CEO Bob Firth said the construction of the new plant is in line with company plans for expansion of the Eagle Chief system.

The Eagle Chief system has more than 600 miles of natural gas gathering pipelines and compression facilities located in Alfalfa, Blaine, Garfield, Major and Woods counties.

Processed gas is delivered by Caballo to the ONEOK gas transportation and panhandle eastern pipeline while natural gas liquids are delivered to the ONEOK NGL pipeline.

Saltwater disposal and crude oil gathering systems are also part of the Eagle Chief system, which was acquired by Caballo in December 2011.

"The liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations provides an attractive return for producers, even under current pricing conditions," continued Firth.

"An additional plant could be up and running rapidly depending upon market conditions and demand, further enhancing our ability to meet the needs of our customers."

The plant is expected to be in service by the first quarter of 2013.