ARM Energy (ARM) and HPS Investment Partners, LLC (HPS) has recently announced that Kingfisher Midstream, LLC began full operation of the Kingfisher Midstream Lincoln plant in Oklahoma earlier this month. ARM Midstream, a subsidiary of ARM Energy, began construction of the facility in September 2015 in partnership with capital provided by HPS.
“Bringing the Kingfisher Midstream Lincoln plant online and on schedule is an exciting milestone for our partnership and for producers in the STACK,” commented Zach Lee, ARM's Chief Executive Officer. “The facility will greatly alleviate some of the production bottlenecks in the STACK area by providing 60 000 ft3/d of needed processing capacity. Producers in the area may now benefit from an unconstrained gas gathering option as well as a centralised crude oil truck load out facility.”
Don Dimitrievich, a Managing Director at HPS, said: “HPS greatly values its partnership with ARM and is excited to help launch this best-in-class midstream system for producers in the STACK."
"Development of the Kingfisher Midstream Lincoln plant reflects the increasing focus of HPS on investing in midstream assets in production areas, such as the STACK, where some of the best economics in the industry currently exist," Dimitrievich continued.
The project is anchored by a long-term commitment of over 100 000 net acres dedicated to Kingfisher Midstream, LLC. Phase one features a 60 000 ft3/d cryogenic processing plant, over 100 miles of high and low pressure gas gathering pipeline, over 100 miles of crude gathering, a 50 000 bbl crude storage facility, condensate stabilisation, and six crude oil truck loading stations. It includes 15 000 hp of compression allowing it to accept both low and high-pressure gas from field production. Phase two will feature an additional 200 000 ft3/d of processing capacity, incremental gas and crude gathering, and added market connectivity.
"Producers in the STACK continue to have impressive results from multiple horizons adding to the economic viability of the play," said Taylor Tipton, President of ARM Midstream and ARM Energy Management. "As the STACK develops and as Kingfisher Midstream's processing capabilities expand, the added processing capacity, firm residue take away, and crude pipeline connectivity to Cushing will ensure those economics are protected."
Adapted from press release by Stephanie Roker
Read the article online at: https://www.worldpipelines.com/project-news/19072016/kingfisher-midstream-lincoln-plant-is-in-full-operation/