Oklahoma City-based Mustang Fuel Corporation announced that its midstream subsidiary Mustang Gas Products, LLC is making progress on a $65 million capital upgrade aimed at increasing the capacity, efficiency and reach of its STACK midstream assets, according to a company press release issued on Tuesday.
Mustang Fuel’s capital spending program is already underway and will result in increased systemwide gathering capability and increased plant capacity to more than 225 million cubic feet per day over the next 18 months. Scheduled improvements include upgrading horsepower, replacing older equipment, installing new pipe and adopting new technologies for process, efficiency and control enhancements.
“Leveraging off of our 65 plus years’ experience in the midstream business and our sizeable existing footprint in the STACK, this capital spend will significantly enhance our position as a preferred midstream operator in Oklahoma,” said Carey Joullian, Mustang Fuel Corporation’s President and CEO.
Mustang Gas Products currently operates a “super system” of four cryogenic natural gas processing plants, a straddling plant, more than 4,200 miles of pipe and 110,000 horsepower of compression spread over 10 counties in central and north central Oklahoma. The system is concentrated in Kingfisher, Blaine, Canadian, Garfield and Major counties – a large swath of area in the STACK play — where the company gathers gas from nearly 2,000 sections.
“MGP will source the committed capital internally, which will allow us greater flexibility under existing credit sources in undertaking future projects,” said Joullian. “With our current spending program, we intend to play an increasing role helping producers develop the world-class STACK play here in Oklahoma.”
