Aspen Midstream LLC said Oct. 11 that the company is constructing a large diameter residue pipeline and both a lean and a rich gas gathering system in the Austin Chalk play in Texas.

Aspen’s Austin Chalk System is located in the Giddings Field. Producers drilling the Giddings Field are developing multiple stacked pay zones, including the Austin Chalk and Eagle Ford Shale formations. The Aspen Austin Chalk System is strategically located to ensure producer access to premium residue and NGL markets and spans the Giddings Field, including Washington, Fayette and Burleson counties, along with portions of Austin, Brazos, Colorado and Waller counties.

The system is supported by a combined total of approximately 150,000 acres of long-term dedications from multiple producers. Aspen is engaged in discussions with other producers about additional dedications. The system is expected to be in service by the third quarter of 2019.

“We are extremely excited about the Aspen Austin Chalk System and the opportunity to team up with premier producers in an area lacking adequate pipeline and processing capacity,” James Clarke, Aspen Midstream CEO, said. “We believe our system’s proximity to premium markets for both NGL and natural gas takeaway will allow our producers to realize better netbacks and compete economically with other basins.”

Aspen Midstream is backed by growth capital from EnCap Flatrock Midstream. The initial system will consist of more than 90 miles of 10-inch to 20-inch gas gathering mainlines, treating facilities, a state-of-the-art cryogenic processing plant with the capacity to process 200 million cubic feet of natural gas per day, and a residue gas pipeline to the market hub at Katy, Texas.

Aspen Midstream expects to expand its Austin Chalk System by adding additional gathering, cryogenic processing and treating facilities as necessary and is engaged in discussions with the area’s producers to determine future needs.