DENVER—Outrigger Energy II LLC announced Jan. 7 that it has entered into a long-term definitive gas gathering and processing agreement with XTO Energy Inc. to service XTO’s production in Williams County, N.D.
The gathering system will comprise a 70-mile, 20- and 24-inch diameter, rich gas pipeline originating in eastern Williams County and terminating at a new 250 million cubic feet per day (MMcf/d) cryogenic gas processing plant located west of Williston, N.D. Plans are also underway for a plant expansion of up to an additional 200 MMcf/d, for total gas processing capacity of 450 MMcf/d.
Outrigger will construct, own and operate the cryogenic processing plant and gathering system. The high efficiency plant features ethane recovery and rejection capabilities that will provide direct market access to the Northern Border Pipeline system for residue gas and the ONEOK NGL pipeline system for natural gas liquids. Future NGL fractionation facilities may be added to provide finished NGL products for local markets.
Dave Keanini, Outrigger’s CEO, stated, “We are grateful XTO has entrusted Outrigger to build a gathering system with substantial capacity and state-of-the-art facilities that will assist XTO with execution of its significant development plans in Williams County. Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity.
“Moreover, this additional midstream capacity for gas production north of the Missouri River allows the State of North Dakota to make strides towards its goal of minimizing gas flaring in the Basin,” he said. “Over the last six years, the Outrigger team has achieved an excellent track record of project execution, safe and reliable operations and customer service in the Delaware, Midland, Powder River and DJ Basins, and we couldn’t be more excited for the opportunity to do the same in North Dakota.”
Will the Midcontinent be the Next Big Thing? Possibly, but it may be a while.
Gas proved more trouble than it was worth—literally. The answer for years proved easy: Flare it. Get rid of it.
The Appalachia’s hills and valleys exhibit both good news and bad news for the natural gas market.