- Associated Press - Sunday, December 21, 2014

CASPER, Wyo. (AP) - Natural gas will begin flowing through a new 108-mile natural gas pipeline in the Powder River Basin in January, the company developing the project has announced.

Meritage Midstream Services announced Thursday that the new line will connect the 50 Buttes natural gas processing complex outside Gillette with the Phillips 66 Powder River line near Douglas.

The Casper Star-Tribune reported (https://bit.ly/1HksFTl) that the project comes in response to increasing oil production in the region. Natural gas is a byproduct of oil production, but infrastructure capable of capturing that gas is lacking in the area.

The pipeline will initially be able to transport 15,000 barrels of liquid natural gas. Maximum capacity could grow to 30,000 barrels if demand warrants, the company said in a release.

“We are very pleased that our new NGL pipeline will provide producers in the Powder River Basin with rapid access to market and improved netbacks,” Meritage Midstream CEO Steve Huckaby stated.

“Our focus is always on what’s best for our customers, and this initial pipeline is a great intermediate solution while we continue to build out the system to offer connectivity to additional markets, including market centers at Conway, Kansas, and potentially Mount Belvieu, Texas.”

The company also announced plans to begin work on a 140-mile pipeline connecting producers in the Powder River Basin to the Overland Pass Pipeline Co.’s 760-mile line, which terminates at Conway, Kansas. This is an extension of a line that runs from Douglas to Cheyenne.

Work on that line should begin early in 2015 and be completed by the first quarter of 2016, the company said.


Information from: Casper (Wyo.) Star-Tribune, https://www.trib.com

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