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Santa Fe Midstream building Permian natgas assets

12 Sep 2017 19:11 (+01:00 GMT)
Santa Fe Midstream building Permian natgas assets

Houston, 12 September (Argus) — Santa Fe Midstream is building a natural gas gathering, treatment and processing system in the Permian basin.

Construction began in August, and the initial natural gas facilities are expected to be operational by the second quarter of 2018, the Texas-based company said.

Santa Fe said it was also developing a crude oil gathering system in the area.

The San Andres formation is located within a geological region known as the Central basin platform in west Texas. This area separates the Delaware and Midland basins, and all are contained within the larger Permian basin.

The company's natural gas and crude midstream facilities will be located in the Yoakum, Gaines and Cochran countries in Texas, as well as Lea County in New Mexico.

Residue from the natural gas processing plant and treating facilities near Denver City in Texas will be delivered to El Paso Natural Gas' interstate pipeline, with access to the Waha hub as well as the western US natural gas markets, the company said.

In addition, natural gas liquids will be delivered to Enterprise Products' Chaparral pipeline for transportation to Mont Belvieu in Texas.