Outrigger Energy to expand midstream capabilities in Permian basin

US-based midstream energy company Outrigger Energy has announced the expansion of its midstream capabilities in the Permian basin.

The company will add a natural gas gathering and processing and crude oil gathering system in the Midland basin of West Texas.

Initially the system to be constructed, owned and operated by Outrigger, will be located in Howard, Borden and Martin Counties, Texas and anchored by long-term acreage dedications from independent producer Tall City Exploration.

According to the company, over 120 miles of natural gas gathering lines, 75 miles of crude oil gathering lines as well as related wellhead and measurement facilities are included in its Midland basin system.

The system will also have a 30-mile raw gas gathering header, which will feed a natural gas processing facility to be located in Martin county and three field compressor stations.

Customers on the system will get access to multiple takeaway pipelines for natural gas, NGLs and crude oil.

The crude oil system will also provide access to local markets, with initial deliveries expected to commence in the fourth quarter of 2014.

Outrigger Energy CEO Dave Keanini said that the latest development of the company’s Midland basin system comes on the heels of its Delaware basin system announced in March.

"The Permian Basin is a key strategic area for Outrigger and we’re pleased to be able to provide our customers with the critical infrastructure they need. Our system will provide safe and reliable access to the highest value end-markets for our customers’ products, while also giving them remote access to accurate, real-time data regarding their production," Keanini added.