Oklahoma’s SCOOP and STACK oil and gas plays are getting a new cryogenic gas processing facility, courtesy of Blue Mountain Midstream LLC, a company formerly known as Linn Midstream LLC.
Blue Mountain’s a subsidiary of Houston-based Linn Energy Inc. and signed a contract with Midland, Texas-based BCCK Engineering Inc. to build the Chisholm Trail Cryogenic Gas Plant. It’ll be part of Blue Mountain’s Chisholm Trail midstream business in the SCOOP and STACK plays.
The new plan will have a total capacity of 250 million cubic feet a day. Construction is underway and the plant should be commissioned in the second quarter of 2018.
The existing Chisholm trail business has nearly 30 miles of gas gathering pipeline and 60 million cubic feet a day of refrigeration capacity. The expansion will add 35 miles of low-pressure gathering.
“Blue Mountain has the midstream assets and capability to generate significant value for Linn shareholders,” Linn President and CEO Mark Ellis said in a press release. “Constructing the Chisholm Trail Cryogenic Plant meaningfully increases our growing midstream business. Our dedicated acreage in the Merge and this focused investment give us a tremendous competitive advantage.”
The new gas plant is part of Linn Energy’s agreement announced last month with Tulsa-based Citizen Energy II LLC the formation of a joint venture called Roan Resources LLC. The venture is focusing on the SCOOP and STACK plays.