Shale gas gatherers add long-term commitments in SCOOP, Delaware

By Luke Geiver | May 07, 2018

WhiteWater Midstream continues to add big-name partners to its Delaware Basin pipeline created to move shale gas produced from the play. A subsidiary of Targa Resources Corp., MPLX LP, is joining WhiteWater and WPX Energy. The addition of the Targa Resources Corp. subsidiary has helped WhiteWater add long-term transportation service agreements with two major producers from Culberson County. 

According to the company, the Agua Blanca will now have over 1.1 Bcf/d committed. In addition, connectivity agreements have also been planned with Brazos Midstream, Crestwood Midstream Partners, EnLink Midstream and Medallion Midstream. 

WhiteWater will retain a 60 percent equity interest in the pipeline with WPX Energy, MPLX and Targa holding 20 percent, and 10 percent respectively. 

In the SCOOP/STACK, Cardinal Midstream III LLC has formed a deal with Camino Natural Resources for its Iron Horse gathering and takeaway system. Along with Travis Peak Resources LLC, the deal will bring more than 150,000 acres to the system. “As we broaden the rich natural gas system, we are also evaluating ways to add complimentary crude and dry gas gathering services,” said Tim Roberts, president of Cardinal. 

Cardinal expects to complete the construction of approximately 150 miles of high- and low-pressure natural gas gathering pipeline by the end of 2018. The system also includes multiple compressor stations and the Iron Horse cryogenic gas processing plant. Located in Grady County, the Iron Horse plant is expected to come into service in October 2018