Tall Oak to build natural gas gathering and processing system in Oklahoma, US

Tall Oak Midstream has unveiled plans to construct a natural gas gathering and processing system in the Central Northern Oklahoma Woodford (CNOW) play.

The initial 250-mile pipeline system will serve natural gas producers in the area targeting the Mississippi Lime, Woodford Shale and Cleveland formations. The system will feature various compression sites and a cryogenic processing plant located in Payne County, Oklahoma.

Tall Oak has a long-term acreage commitment from American Energy – Woodford (AEW), an affiliate of American Energy Partners. Tall Oak acquired 60 miles of existing gas gathering pipeline from AEW to set up the gathering footprint.

The company’s new cryogenic processing facility, dubbed the Battle Ridge Plant, is expected to start operations in December. It will have an initial capacity of 75 million cubic feet per day (MMcf/d) and will feature nitrogen rejection capabilities.

Tall Oak Midstream chief commercial officer Carlos Evans said that the Battle Ridge facility is large enough to accommodate planned expansions, which are anticipated to bring processing capacity to 300 MMcf/d as customer demand increases.

"We look forward to expanding our system and services to provide premium midstream solutions to producers in the CNOW area," Evans added.

The company said that the CNOW System will offer access to downstream markets including Southern Star Central Gas Pipeline and Enable Gas Transmission for residue gas.

Tall Oak is financially backed by $400m in private equity commitments from EnCap Flatrock Midstream.

EnCap Flatrock made an initial investment of $100m to Tall Oak in February and has since made additional commitments totaling $300m.