SandRidge, Advantage Midstream enter Niobrara gas processing deal

SandRidge Energy Inc., Oklahoma City, has let a contract to Advantage Midstream LLC, Dallas, to build and operate a natural gas refrigeration plant and provide gas processing services for acreage in the North Park basin, Jackson County, Colo.

The agreement provides for installation of a gas refrigeration plant adjacent to and in conjunction with Advantage Midstream’s earlier announced gas-to-liquids conversion plant that is to be installed in Jackson County to process gas from SandRidge's North Park assets, Advantage Midstream said.

As part of the agreement, Advantage Midstream will own and operate the system and market all liquids from the plant.

Addition of the refrigeration complex will allow SandRidge to realize increased value from its gas stream for NGL’s while providing other economic and environmental benefits to SandRidge, Advantage Midstream said.

Advantage Midstream disclosed neither a value of the contract nor a timeframe for the project’s implementation.

This latest contract follows Advantage Midstream’s previous long-term agreement signed in May to deliver gas conversion services for SandRidge’s North Park basin acreage.

As part of the May agreement, Advantage Midstream also will own and operate the gas conversion system, as well as market all liquid fuels from the plant, the service provider said in a May 9 release.

SandRidge, which earlier this year rejected Midstates Petroleum Co. Inc.’s unsolicited public offer to combine the two companies, acquired a Niobrara shale position in the North Park basin in 2015 (OGJ Online, Mar. 20, 2018; Feb. 9, 2018; Dec. 1, 2015).

Contact Robert Brelsford at [email protected].