Ryckman Creek lets contract for Opal gas storage project

Ryckman Creek Resources LLC, a subsidiary of Peregrine Midstream Partners LLC, let a contract for the project management support of the 35-bcf Ryckman Creek natural gas storage facility to Foster Wheeler Upstream. The new facility will serve Opal Hub.

The storage field will lie 25 miles southwest of the hub in Uinta County, Wyo. Storage will occur in a partially depleted oil and gas field converted to high-deliverability, multicycle gas storage. Initial maximum injection capability will exceed 350 MMcfd, with maximum withdrawals of roughly 480 MMcfd.

The project will include drilling new horizontal wells, construction of new pipeline facilities, and upgrades to an existing compressor station, formerly known as Canyon Creek Compression Co. when operated by Kinder Morgan.

Foster Wheeler expects to complete the project, which will have connections to five interstate pipelines, in third-quarter 2012.

Ryckman held an open season on the storage in late 2010, offering 15 bcf beginning in April 2012, and received market-priced bids requesting more than 50 bcf of capacity from 25 companies (OGJ Online, Nov. 4, 2010). Ryckman is considering a Phase II expansion to that capacity.

In addition to developing the gas storage field, Ryckman Creek Resources will initiate enhanced oil recovery operations, initially reentering and testing vertical wells.

Foster Wheeler Upstream is part of Foster Wheeler AG’s global engineering and construction group.

Contact Christopher E. Smith at chriss@ogjonline.com.

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