Caballo Energy commences production at Carmen gas processing plant in the US

US-based midstream services company Caballo Energy has commissioned the Carmen gas processing plant in Alfalfa County, Oklahoma, US.

The new gas processing plant will have a capacity to produce 60 million cubic feet of natural gas per day.

It is expected to serve the increasing natural gas production in the liquids-rich Mississippi Lime and Cana Woodford shale plays.

The new plant has increased the total gas processing capacity of Caballo in the region to almost 100 million cubic feet of natural gas per day.

The company said that it has secured long-term commitments of over 125,000 acres for the Carmen plant, which is currently working at 80% of its total capacity.

Carmen facility along with Caballo’s existing Eagle Chief plant, which is also located in Alfalfa County, serves the company’s Eagle Chief system.

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

The system also includes salt water disposal and crude oil gathering systems.

The processed gas from the system is supplied to the ONEOK gas transportation and Panhandle eastern pipe line, while natural gas liquids are delivered to the ONEOK NGL pipeline.

Caballo Energy president and CEO Bob Firth said the company has commissioned the Carmen gas processing plant as part of its efforts to expand the Eagle Chief system.

"Horizontal drilling has brought a boom to northwestern Oklahoma. There is a great deal of drilling activity focused on the liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations," Firth added.

"We believe the region has significant potential for future growth, particularly to the east and into Kansas."

The company is also considering the possibility of adding a second cryogenic processing plant at the 160-acre site, which will further increase its gas processing capacity to 220 million cubic feet of natural gas per day.

---

Image: The new gas processing plant will serve the growing natural gas production in liquids-rich Mississippi Lime and Cana Woodford shale plays, US. Photo: Courtesy of US Department of Transportation.