Denver-based Outrigger Energy II LLC has entered a long-term natural gas gathering and processing agreement with ExxonMobil Corp. subsidiary XTO Energy Inc. to service XTO’s production in Williams County, ND.
To accommodate the agreement, Outrigger will build, own, and operate a 70-mile, 20- and 24-in. diameter, high-pressure, rich gas pipeline starting in eastern Williams County that will terminate west of Williston, ND, at Outrigger’s planned 250-MMcfd cryogenic gas processing plant, Outrigger said on Jan. 7.
The high-efficiency gas plant will feature ethane-recovery and rejection capabilities providing direct market access to the TC Pipelines LP-Oneok Inc. jointly owned Northern Border Pipeline system for residue gas and to Oneok’s NGL pipeline system for NGLs.
While Outrigger said it may add future NGL fractionation facilities to provide finished NGL products for local markets, the midstream operator confirmed plans are already under way to expand the Williams County gas plant by additional 200 MMcfd for a total gas processing capacity of 450 MMcfd.
Currently under construction, Outrigger’s Williams County rich gas pipeline and associated gas processing plant are scheduled to become operational in December 2020, according to the operator’s website.
A timeframe for the proposed expansion of the gas plant, however, was not disclosed.
“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,” said Dave Keanini, Outrigger’s chief executive officer.
Alongside routing of the gathering line providing other Williston basin operators access to additional gathering and cryogenic processing capacity, Outrigger’s additional midstream capacity for gas production north of the Missouri River also will enable North Dakota to advance its goal of minimizing gas flaring in the basin, Keanini said.
XTO holds more than 479,000 acres in North Dakota, according to the company’s website.