The EnCap Flatrock Midstream-sponsored Tall Oak Midstream III LLC commenced a non-binding open season to solicit shipper contracts for a planned natural gas residue pipeline that would serve producers in Oklahoma's Arkoma STACK play.
The Arkoma Residue Capacity pipeline, or ARC, would connect to Tall Oak's planned Panther Creek gas processing plant in Hughes County, Okla., and to a planned receipt point off the Enable Midstream Partners's Enable Gas Transmission LLC line. The ARC pipeline is an expansion of Tall Oak's system in the Arkoma STACK that is composed of about 90 miles of gathering pipeline and two compression facilities, among other facilities, according to a March 6 news release. The system serves over 150,000 dedicated acres.
From the receipt points, the ARC pipeline would carry residue gas to interconnects with other pipelines to the south near Bennington, Okla. Planned interconnects would include Kinder Morgan Inc.'s Midcontinent Express pipeline, Boardwalk Pipeline Partners LP's Gulf Crossing Pipeline Co. and Natural Gas Pipeline Co. of America LLC.
The project is also expected to help with transportation capacity constraints for residue gas from the STACK, SCOOP and Merge plays in Oklahoma, particularly through the receipt point off the Enable Gas Transmission line.
Tall Oak Midstream III, a Tall Oak Midstream LLC company, aims to begin construction of the ARC pipeline in the second quarter of 2019, and expects to place the pipeline into service by the end of 2019. The 200-MMcf/d Panther Creek cryogenic gas processing plant is scheduled to start operations by the first quarter of 2019. The plant would connect to Enable Gas Transmission, Enable Oklahoma Intrastate Transmission LLC and MarkWest Energy Partners LP's Arkoma Connector pipeline.
"We are seeing a very rapid rise in production in this region and a related increase in demand for takeaway capacity," said Carlos Evans, chief commercial officer of Tall Oak. "The ARC Pipeline will connect the Arkoma STACK with premium downstream markets."
The open season is scheduled to close March 30.