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Mustang Fuel to increase reach of its midstream assets

Published by , Senior Editor
World Pipelines,

Oklahoma-based Mustang Fuel Corporation announced today that its midstream subsidiary Mustang Gas Products, LLC (MGP) is undertaking a significant US$65 million capital program aimed at increasing the capacity, efficiency and reach of its midstream assets.

According to President and CEO Carey Joullian, this important infrastructure investment is about being able to provide high quality service to its producers, particularly in the very competitive environment of what’s known as the STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher).

“Leveraging off of our 65 plus years’ experience in the midstream business and our sizeable existing footprint in the STACK, this capital spend will significantly enhance our position as a preferred midstream operator in Oklahoma,” Joullian said.

MGP’s capital spending programme is already underway and within the next 18 months will result in increased system-wide gathering capability and increased plant capacity – to more than 225 million ft3/d. Scheduled improvements include upgrading horsepower, replacing older equipment, installing new pipe and adopting new technologies for process, efficiency and control enhancements.

“Altogether, MGP has committed more than US$65 million to these announced improvements,” Joullian said. “MGP will source the committed capital internally, which will allow us greater flexibility under existing credit sources in undertaking future projects. With our current spending programme, we intend to play an increasing role helping producers develop the world class STACK play here in Oklahoma.”

MGP currently operates a ‘super system’ consisting of four cryogenic gas processing plants, a straddle plant, more than 4200 miles of pipe and 110 000 hp of compression spread over 10 counties in central and north central Oklahoma. The majority of MGP’s footprint is in Oklahoma’s STACK play and is concentrated in Kingfisher, Blaine, Canadian, Garfield and Major counties, where MGP gathers gas from nearly 2000 sections. MGP can currently process up to 175 million ft3/d and offers both high pressure and low pressure gathering. MGP also connects to multiple pipelines, allowing for increased optionality, and has contracted for 70 million ft3/d of firm takeaway capacity.

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