Canyon begins development of Permian Basin midstream system

Canyon Midstream Partners, LLC (Canyon) has announced it has commenced development of natural gas gathering, processing and treating system in the Permian Basin (the James Lake System).

The James Lake System is anchored by a ten year gathering and processing agreement with one of the world's largest oil and gas companies.

The James Lake System will include a cryogenic gas processing plant in Ector County, Texas, (the James Lake Plant), with an initial processing capacity of 70 million m³/day and treating capabilities for natural gas containing hydrogen sulfide and carbon dioxide.

To supply the plant, Canyon is developing 40 miles of high pressure gathering trunklines and three compressor stations which will connect to low pressure field gathering systems that Canyon is constructing for its anchor customer in Ector County and Andrews County, Texas. When completed in late 2014, the James Lake System will deliver residue gas into the El Paso Natural Gas pipeline and offer interconnections to multiple NGL lines in Ector County.

Michael Walsh, President of Canyon, stated, “Canyon is pleased to have the opportunity to enhance our initial customer’s current and future production in Andrews and Ector Counties with the development of our James Lake project. We believe that additional gas gathering, compression, processing and treating capacity in the Permian Basin is necessary for our customers to realise the potential of their resources and reserves.”

“Canyon is in advanced discussions with producers controlling acreage and production to support additional treating and processing capacity at the James Lake Plant. Ultimately, we expect the current James Lake project will be the first phase of a distributed and integrated gathering and processing system in the Permian Basin, where Canyon will provide our customers with safe, reliable, operationally efficient and commercially responsive midstream services.”

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/14012014/canyon_begins_development_of_permian_basin_midstream_system/