Outrigger Energy II LLC entered into a long-term gas gathering and processing agreement to provide services to XTO Energy Inc.'s production in Williams County, N.D.
Under the agreement, Outrigger will construct, own and operate a cryogenic gas processing plant and a 70-mile, 20-inch and 24-inch diameter rich gas pipeline system, according to a Jan. 7 news release. The pipeline will start from eastern Williams County and end at the 250 MMcf/d gas processing plant west of Williston, N.D.
The plant is anticipated to undergo an expansion of up to 200 MMcf/d of gas processing capacity, for a total of 450 MMcf/d. The processing complex will also offer ethane recovery and rejection capacities that will provide direct access to the Northern Border Pipeline Co. for gas and Oneok Inc.'s pipe system for NGLs, according to the release. In addition, Outrigger said it may add future NGL fractionation facilities for finished NGL products.
"Routing of the gathering line will provide other Williston Basin operators access to much-needed gathering and cryogenic processing capacity," Outrigger CEO Dave Keanini said in the release.
Exxon Mobil Corp. subsidiary XTO focuses on the production of oil, gas and NGLs in the U.S. Outrigger specializes in greenfield project development and is backed by equity commitments from NGP Energy Capital Management LLC and an entity affiliated with private investor Brion Wise.