Altus bolsters Permian gas midstream foothold with pipe, plants

By Luke Geiver | May 30, 2019

Altus Midstream is positioning itself for a long-term presence in the Permian Basin shale gas scene. This week the company bought into a long-haul pipeline plan designed to move more than 2 billion Bcf/d of natural gas from the Waha area in West Texas to the Texas Gulf Coast.

Through its 27 percent interest in the Permian Highway Pipeline, Altus will invest roughly $161 million in the project that it expects to be complete in 2020.

“This is a high-quality project supported by take-or-pay contracts with creditworthy counterparties,” said Clay Bretches, CEO and president.

Altus also announced this week that it has brought the first of three cryogenic gas processing facilites online in the Waha area. The news should be welcomed by Apache Corp., who earlier this year had to shut down some gas production in the region of Altus' new cryogenic processing facility due to the lack of takeaway options and the price for gas. 

"These cryogenic processing facilities feature state-of-the-art SRX processing technology, which optimizes processing economics with better NGL recoveries in both ethane recovery and rejection mode versus more commonly used processing methods in the Permian Basin. Better recoveries will drive enhanced netbacks for Apache and provide a competitive advantage to Altus for third-party business," Bretches said.