Full service midstream energy company Outrigger Energy II has signed a long-term gas gathering and processing agreement with XTO Energy, to service the latter’s production in Williams County, North Dakota.
Under the agreement, Outrigger is expected to construct, own and operate a cryogenic processing plant and gathering system in the region.
The processing plant is designed to feature ethane recovery and rejection capabilities, facilitating direct market access to the Northern Border pipeline system for residue gas and the ONEOK pipeline system for natural gas liquids.
Outrigger CEO Dave Keanini said: “We are grateful XTO has entrusted Outrigger to build a gathering system with substantial capacity and state-of-the-art facilities that will assist XTO with execution of its significant development plans in Williams County.
“Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity. Moreover, this additional midstream capacity for gas production north of the Missouri River allows the State of North Dakota to make strides towards its goal of minimizing gas flaring in the Basin.”
The company intends to expand the capacity of the processing plant by an additional 200MMcfd, to make the total gas processing capacity reach 450MMcfd. NGL fractionation facilities are also expected to be added in the future, to supply finished NGL products for local markets.
In addition, the gathering system will include a 70 mile (112km) gas pipeline, with 20 to 24 inch diameter, which originates in eastern Williams County and ends at a new 250MMcfd cryogenic gas processing plant located in western Williston, New Dakota.
Outrigger is supported by equity commitments from NGP
Outrigger Energy II is a private, full-service midstream energy company focused on greenfield project development, liquids-rich natural gas and crude oil infrastructure in the DJ Basin of Colorado and Wyoming and the Williston Basin.
Outrigger is supported by equity commitments from NGP Energy Capital Management and an entity affiliated with Brion G. NGP is a private equity firm investing in the energy sector with $20bn cumulative equity commitments.
