Targa Resources Corp. and Sanchez Midstream Partners LP (SNMP)—formerly Sanchez Production Partners LP (SPP)—have commissioned their 50-50 Eagle Ford joint venture Carnero Processing LLC’s 200-MMcfd Raptor cryogenic natural gas processing plant in La Salle County, Tex. (OGJ Online, Oct. 5, 2015).
The Raptor plant, which completed testing and startup in June, is now fully operational and receiving wet gas deliveries from SNMP affiliate Sanchez Energy Corp.'s Catarina field via the JV’s 45-mile, high-pressure Carnero gathering pipeline, SMP said.
Work already is under way to expand the Raptor processing plant to 260-MMcfd by the end of this year’s third quarter, SNMP said.
Designed to accommodate Sanchez’s rising production from its Eagle Ford shale acreage in Dimmit, La Salle, and Webb counties, Tex., as well as other third-party producers, the project follows Sanchez’s 2016 sale of its 50% interest in Carnero Processing and noncore producing oil and gas assets in South Texas to SPP (OGJ Online, Oct. 25, 2016; May 16, 2016).
Alongside startup of the new Targa-operated plant, SNMP said it also is nearing the end of construction on Phase 1 of its wholly owned Raptor SECO pipeline, which will deliver dry gas from the Raptor plant to markets in South Texas beginning later this month.
Additional sales
SNMP’s midstream update accompanied the partnership’s announcement that it has agreed to sell certain noncore, nonoperated production assets in Texas to privately owned Sendero Petroleum LLC of Midland, Tex., for $6.3 million.
The sale of unidentified assets, which is scheduled to close this quarter, comes as part of SNMP’s strategy of focusing on midstream activities currently concentrated in the western Eagle Ford shale of South Texas.
The partnership recently signed a separate agreement to divest its remaining operated Oklahoma production assets for $5.5 million in a transaction also scheduled to close by the end of the third quarter, according to SNMP’s latest quarterly report.
On May 26, the partnership announced that, effective June 2, SPP officially would be renamed SNMP to reflect the company’s midstream focus and strategy.
Contact Robert Brelsford at [email protected].
