Permian basin processing pushed by agreements, plant expansion

Canyon Midstream Partners LLC, Houston, has signed gathering and processing agreements with ExxonMobil Corp. subsidiary XTO Energy Inc. and Apache Corp. for midstream services on Canyon’s James Lake system in the Permian basin (OGJ, June 2, 2014, p. 72).

In addition, Canyon has expanded its James Lake cryogenic gas processing plant in Ector County, Tex., to 100 MMcfd from 70 MMcfd by adding a 30-MMcfd cryogenic turbo expansion train.

The plant is part of Canyon's James Lake system, which currently consists of 60 miles of 12-in. trunkline and six field compressor stations providing low-pressure gathering to Ector, Andrews, Martin, Dawson, and Gaines counties in Texas. When completed later this year, the system will deliver residue gas into the El Paso Natural Gas pipeline and deliver NGLs to the Sand Hills pipeline (OGJ Online, Oct. 25, 2012) and the Chaparral pipeline in Ector County.

Canyon is also developing Phase 2 of the James Lake system, which will consist of a second 100-MMcfd cryogenic gas plant in Martin County and 60 additional miles of 12-in. trunkline, which will expand the system's service territory into Howard and Borden counties.

Canyon expects Phase 2 to begin operations in first-half 2015.

Canyon was formed in June 2012 by former senior management of Delphi Midstream Partners LLC and Laser Northeast Gathering Co. LLC.

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