Teak opens Eagle Ford gas gathering, processing capacity

Teak Midstream LLC has begun operation of more than 250 miles of natural gas gathering and residue delivery pipelines and its adjoining 200 MMcfd Silver Oak cryogenic gas processing plant in South Texas, serving gas producers in the Eagle Ford shale and surrounding area. Teak plans to double the gas processing capacity by first-quarter 2014 based on volume commitments to date and increasing demand to process liquids-rich gas from the Eagle Ford, as well as the Buda, Pearsall, Olmos, and Escondido formations.

Teak's new pipelines include two inlet high-pressure gas gathering systems. One system consists of 178 miles of 24-in. and 16-in. OD pipeline with 600 MMcfd of gas capacity. This system starts in Dimmit County on the western edge of the Eagle Ford and moves rich gas east through Webb, La Salle, McMullen, and Live Oak counties to the Silver Oak plant in Bee County. Teak jointly owns this gathering system with TexStar Midstream. The second system consists of 22 miles of 20-in. OD pipeline moving 400 MMcfd between Karnes County and the Silver Oak plant.

The pipelines also include 57 miles of 20-in. OD residue gas line, delivering dry gas from the Silver Oak plant to six major downstream intrastate and interstate pipelines: Tennessee Gas Pipeline, Channel, Kinder-Tejas, Transco, Texas Eastern, and NGPL. Teak also built 3 miles of 12-in. OD NGL pipeline, moving liquids recovered at the Silver Oak plant to the DCP Sand Hills NGL pipeline and ultimately to the Mont Belvieu fractionation complex and other fractionation Gulf Coast fractionation capacity.

Teak recently executed long-term gathering and processing agreements with Comstock Resources Inc. and another large Eagle Ford shale producer supporting the pipelines and plant. Talisman Energy USA Inc. and Statoil Natural Gas LLC signed on as anchor customers earlier this year (OGJ Online, Feb. 22, 2012).

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

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