The new facility located near Carmen, Oklahoma will be built on 160 acre of site and will have a capacity of 60 million cubic feet of natural gas per day (MMcf/d).
The Carmen plant will increase e the processing capacity of the company to 100 MMcf/d.
Caballo Energy president and CEO Bob Firth said the new facility will increase the company’s existing Eagle Chief system.
"The liquids-rich gas found in the Mississippi Lime and Cana Woodford shale formations provides an attractive return for producers, even under current pricing conditions," Firth added.
"Our plans also call for the development of an additional cryogenic processing plant next to the Carmen plant.
"An additional plant could be up and running rapidly depending upon market conditions and demand, further enhancing our ability to meet the needs of our customers."
The company is expecting the Carmen plant to begin operations in the first quarter of 2013.
