EnLink lets contract for STACK gas processing plant

EnLink Midstream LLC, Dallas, has let a contract to Saulsbury Industries Inc., Odessa, Tex., to build the Chisholm III natural gas cryogenic processing plant as part of an expansion of its existing system in the Sooner Trend Anadarko basin Canadian and Kingfisher counties (STACK) play of central Oklahoma.

Content Dam Ogj Online Articles 2017 07 Enlink Midstream Llc Stack Operations 1

EnLink Midstream LLC, Dallas, has let a contract to Saulsbury Industries Inc., Odessa, Tex., to build the Chisholm III natural gas cryogenic processing plant as part of an expansion of its existing system in the Sooner Trend Anadarko basin Canadian and Kingfisher counties (STACK) play of central Oklahoma (OGJ Online, Dec. 21, 2016).

Saulsbury will provide overall engineering, procurement, and construction services for the Chisholm III project, including installation of the 200-MMcfd cryogenic plant, refrigeration, residue compression, and all associated equipment, the service provider said.

This latest contract follows EnLink’s two previous EPC project awards to Saulsbury for cryogenic processing plants in the STACK and Delaware basins, the most recent of which includes the 200-MMcfd Chisholm II plant completed in March, Saulsbury said.

A value of the contract was not disclosed.

Content Dam Ogj Online Articles 2017 07 Enlink Midstream Llc Stack Operations 1

EnLink, which in late 2016 announced it would proceed with development of Chisholm III in response to producer activity and well results in the STACK play, said it expects the new plant to be operational by yearend.

Once completed, the Chisholm III expansion will increase EnLink’s central Oklahoma processing capacity to 1 bcfd, representing nearly a threefold increase from the 350 MMcfd of capacity operated in 2015.

In a May presentation to investors, EnLink also said it expects to expand total processing capacity of its jointly owned Lobo gathering and processing system in the Delaware basin to 185 MMcfd by this year’s fourth quarter.

Increased processing capacity follows additional customer commitments that will lift installed capacity of the previously announced 120-MMcfd Lobo II cryogenic natural gas processing plant to revised capacity of 150 MMcfd (OGJ Online, Aug. 4, 2016).

The Lobo II footprint expansion and associated natural gas and liquids-gathering pipeline infrastructure, in Loving County, Tex., and Eddy and Lea Counties, NM, remain on schedule for startup by yearend.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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