A growing number of natural gas processing plant projects are dotting the landscape as gas is extracted from U.S. tight shale formations. Industrial Info is tracking more than 100 projects for planned, or already underway, natural gas processing projects involving grassroot construction or expansions at existing plants. While the bulk of these projects are in the Southwest market region, which contains Texas and Oklahoma, the Rocky Mountains contains a strong number of these projects, thanks to a growing number of plants in New Mexico and Colorado.

Among the projects in the Southwest region is Tall Oak Midstream’s (Edmond, Oklahoma) planned cryogenic natural gas processing plant in Wetumka, Oklahoma. The plant will process 200 million cubic feet per day of gas from the Arkoma Stack Gathering System. Construction is set to kick off in the next few months and be completed by the end of the year. Kahuna Ventures LLC (Westminster, Colorado) is performing engineering, procurement and construction (EPC) on the project, which has an estimated total investment of $100 million.

Underway in Texas is Producers Midstream’s (Dallas, Texas) 60 million-cubic-foot-per-day processing plant in Van Horn. The plant will process natural gas from the Delaware Basin. Construction kicked off in the second half of last year and is expected to be completed soon.

In Colorado, DCP Midstream LLC (NYSE:DCP) (Denver, Colorado) is in the final stages of planning for its 200 million-cubic-foot-per-day Phase II expansion of its O’Connor processing plant in Kersey, Colorado. Saulsbury Industries is providing EPC on the project, which is expected to kick off soon and be completed in the third quarter of this year.

Among the other companies with planned NGL plants is ONEOK Incorporated (NYSE:OKE) (Tulsa, Oklahoma). The company plans to add a 125,000-BBL/d NGL fractionation plant to its existing 150,000-BBL/d plant to extract NGL from increased wet natural gas production from the Cana-Woodford Shale in Oklahoma and the Eagle Ford. Construction on the $575 million project is planned to kick off in the second quarter of this year and be completed in early 2020. Burns & McDonnell Incorporated (Kansas City, Missouri) is performing EPC work.

In Oklahoma, ONEOK is underway with the expansion of its Canadian Valley natural gas processing plant. A second processing train will double plant processing capacity to 400 million cubic feet per day of natural gas. Optimized Process Designs LLC (Katy, Texas) is providing EPC work on the project, which has an estimated TIV of $155 million. Spencer said work was on schedule for the project, which has a targeted in-service date in the fourth quarter of this year.

ONEOK remains in the planning stage for its grassroot Demicks Lake natural gas processing plant in North Dakota. The plant will process up to 200 million cubic feet per day of natural gas from the Bakken Shale. Optimized Process Designs is EPC contractor. The project is planned to kick off this summer and be completed in 2019. In a press release, ONEOK said the Demicks Lake project would increase its natural gas processing capacity in the Williston Basin to more than 1.2 billion cubic feet per day.

Currently the top projects planned to kick off in Ohio is the addition of a fifth natural gas processing train at MarkWest's plant in Summerfield, Ohio. The 200 million-cubic-foot-per-day train would bring the plant's total processing capacity to 1 billion cubic feet per day of gas from the Utica Shale. The project, which has an estimated total investment value (TIV) of $200 million, could kick off early next year, taking six to seven months to be completed. For more information, see Industrial Info's project report.

In Cadiz, Ohio, MarkWest is in the early planning stages for a fourth train at its natural gas processing plant. The plant has a current processing capacity of 525 million cubic feet per day of natural gas, with a 40,000-barrel-per-day (BBL/d) natural gas liquids (NGL) production capacity. The expansion would increase gas processing capacity by 200 million cubic feet per day

These are just a few of the more than 100 active capital natural gas processing projects being tracked by Industrial Info in the U.S.
For more information and the latest Oil & Gas news, please subscribe to the IIR blog.

Leave a Comment

comments powered by Disqus

Recomended for you...

Next Wave of LNG Projects to Meet Rise in Global Demand

Demand for liquefied natural gas (LNG) is forecasted to grow at a rate of 4.5% per year. When…

U.S. Solar Power Doubles Capacity in 2017, but Market Trends Downward

-Utility-scale solar photovoltaic (PV) development continues to trend downward, according to a recent report by the Solar Energy Industries…