DENVER–(BUSINESS WIRE)–Outrigger Energy II LLC (“Outrigger”) announced today that it has entered into a long-term definitive gas gathering and processing agreement with XTO Energy, Inc. (“XTO”) to service XTO’s production in Williams County, ND. The gathering system will comprise a 70-mile, 20- and 24-inch diameter, rich gas pipeline originating in eastern Williams County and terminating at a new 250 MMcfd cryogenic gas processing plant located west of Williston, ND. Plans are also underway for a plant expansion of up to an additional 200 MMcfd, for total gas processing capacity of 450 MMcfd.
Outrigger will construct, own and operate the cryogenic processing plant and gathering system. The high efficiency plant features ethane recovery and rejection capabilities that will provide direct market access to the Northern Border Pipeline system for residue gas and the ONEOK NGL pipeline system for natural gas liquids. Future NGL fractionation facilities may be added to provide finished NGL products for local markets.
Dave Keanini, Outrigger’s CEO, stated, “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. Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity. Moreover, this additional midstream capacity for gas production north of the Missouri River allows the State of North Dakota to make strides towards its goal of minimizing gas flaring in the Basin. Over the last six years, the Outrigger team has achieved an excellent track record of project execution, safe and reliable operations and customer service in the Delaware, Midland, Powder River and DJ Basins, and we couldn’t be more excited for the opportunity to do the same in North Dakota.”
About Outrigger Energy II
Outrigger Energy II LLC is a private, full service midstream energy company specializing in greenfield project development with a current focus on liquids-rich natural gas and crude oil infrastructure in the DJ Basin of Colorado and Wyoming and the Williston Basin. Outrigger is supported by equity commitments from NGP Energy Capital Management and an entity affiliated with Brion G. Wise. For more information, please visit www.outriggerenergy.com.
About NGP Energy Capital Management (“NGP”)
Founded in 1988, NGP is a private equity firm making direct equity investments in the energy sector with $20 billion of cumulative equity commitments. The firm is recognized by the industry as setting a standard for portfolio company support, providing resources and creativity to assist the growth of its portfolio companies. NGP partners with “owner-managers” to build growth companies in the upstream, midstream and oilfield services sectors in North America.
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