DENVER—Meritage Midstream Services II LLC May 13 announced it will more than double the natural gas processing capacity on its supersystem in Wyoming’s Powder River Basin.
Meritage subsidiary Thunder Creek Gas Services LLC currently is constructing a new, cryogenic processing plant in Converse County, Wyo., several miles west of the town of Douglas. Known as Steamboat I, the new plant will have a nameplate capacity of 200 million cubic feet per day (MMcf/d) and is expected to come into service early in third-quarter 2019, bringing Meritage Midstream’s total processing capacity in the basin to 380 MMcf/d. The Steamboat complex is large enough to accommodate two additional 200 MMcf/d cryogenic processing plants as customer demand warrants.
Strategically located in the southern portion of the basin, the Steamboat plant complements Meritage Midstream’s 50 Buttes plant located in Campbell County near Gillette, Wyo., approximately 100 miles north of the Steamboat complex. Now under construction and nearing completion, a 20-inch trunk line will connect the Steamboat I plant to Meritage Midstream’s Thunder Creek gas gathering system. Steamboat I will connect to the Wyoming Interstate Company (WIC) mainline system for residue gas. NGLs currently flow to Phillips 66 and ONEOK.
Construction of the Steamboat I plant is supported by multiple long-term dedications of more than 1 million acres. Meritage is the preeminent midstream provider in the basin with more than 1,200 miles of pipeline in operation, approximately 190 miles under construction and 150,000 of compression horsepower.
“Meritage has grown year over year since we acquired Thunder Creek in 2013, and we now have the largest midstream footprint in the Powder River Basin,” said Meritage CEO Steve Huckaby. “Our growth is the result of the strong relationships we have developed with most of the basin’s leading producers as well as the qualities of the basin itself. The PRB is a long-lived generational basin with multiple economic formations. Wyoming is an industry-friendly state that does an outstanding job of balancing economics with stewardship of the environment. We look forward to continuing to provide our producers with best-in-class infrastructure, customer service and connectivity.”