The total project, which is expected to be completed in the first quarter of 2009 at a cost of approximately $25 million, involves diverting West Panhandle volumes from the partnership’s Stinnett plant, located in Moore County, Texas, to its Cargray plant, located in Carson County, Texas, and subsequently relocating the Stinnett plant’s cryogenic technology to the East Panhandle Arrington system, located in Hemphill County, Texas.
Eagle Rock does not anticipate downtime or reduced throughput volumes across its East or West Panhandle systems while in the process of diverting volumes to Cargray or in the process of upgrading the Arrington plant.
Upon completion of the project, the new Arrington facility will be initially sized to handle 50 million cubic feet per day (MMcfd), but will be readily expandable to 80MMcfd with additional inlet, field and residue compression.
Joseph Mills, chairman and CEO, said: The combined project is projected to be accretive to cash flows by $0.01 to $0.03 per unit in 2009 and beyond and positions the partnership to expand capacity to service our customers in the Granite Wash play of Hemphill County, Texas.
