TEAK Midstream to develop 200-mile natural gas pipeline in the US

TEAK Midstream has unveiled plans to build a 200-mile natural gas gathering and residue delivery pipeline in south Texas, the US.

The company said it will also develop a 200 million MMcf/d cryogenic gas processing plant to serve producers operating in the Eagle Ford Shale play.

The project value is estimated to be $280m.

TEAK has entered into ten-year gathering and processing agreements with Talisman Energy USA and Statoil Natural Gas who will support the construction of the facilities.

TEAK co-chief executive Chris Aulds said its new assets, which will be complementary to the company’s 325-mile Texana gathering system in South and East Texas, will expand its footprint in South Texas and provide it with an ideal growth platform.

"The project greatly enhances our gathering and processing capabilities and raises our customer service to a new level as we help producers move their gas and NGLs to market," said Aulds.

The new facilities are scheduled to be operational in the third quarter of 2012.

The natural gas gathering system will consist of one 125-mile pipeline with a capacity of 600 MMcf/d and another system 20-mile pipeline with a capacity of 400 MMcf/d.

The system will commence operations on land jointly owned by Talisman and Statoil in La Salle county and will move gas production to TEAK’s new gas processing plant, the Silver Oak Plant in Bee county, Texas.

Currently under construction, the Silver Oak gas processing plant near the community of Pettus will be designed to handle liquids-rich Eagle Ford Shale gas.

The project includes the construction of 51 miles of residue gas pipeline that will deliver dry gas from the Silver Oak Plant andconnect with four downstream interstate pipelines and cross other interstate and intrastate pipelines.