EnCap Flatrock Midstream-backed company Aspen Midstream LLC is building a large-diameter residue gas pipeline and a lean and rich gas gathering system in the Austin Chalk in Texas.

Residue gas is the natural gas that remains after processing and extracting NGLs from the gas stream. The planned Austin Chalk system would provide producers with access to residue gas and NGL markets, as it would span across the Giddings Field, including Washington, Fayette and Burleson counties; and portions of Austin, Brazos, Colorado and Waller counties. Drillers around the system are developing multiple stacked pay zones, which includes the Austin Chalk and Eagle Ford Shale.

Supported by about 150,000 acres of long-term dedications from producers, the system would consist of more than 90 miles of 10- to 20-inch gas gathering mainlines and treating facilities. It would also have a 200-MMcf/d cryogenic gas processing plant and a residue gas pipeline to the Katy, Texas, market hub. The system may be expanded through the addition of gathering, processing and treating facilities depending on producers' needs.

Dallas-based Aspen Midstream is an independent midstream solutions provider created in 2017 with capital commitments from the venture capital firm EnCap Flatrock Midstream.