Wichita, Kansas-based MVP Holdings, LLC has announced the formation of Great Salt Plains Midstream Holdings, LLC to expand crude oil and gas infrastructure in Oklahoma’s STACK oil play.
It is a joint venture between MVM Midstream LLC and Chisholm Midstream, LLC. MVM is an entity formed with Energy Spectrum Partners VII LP and MVP Holdings.The move should provide more options for producers in the STACK and also allow Great Salt Plains Midstream to enable its producer customers multiple marketing options. One of those options will be a direct line into the strategic Cushing crude oil complex.
MVP is contributing some recently acquired assets to the joint venture. One is the 115-mile Great Salt Plains Pipeline that stretches from Cherokee to Cushing. The pipeline is supported by long-term acreage dedications and commitments from active Oklahoma producers and crude marketing companies.
As part of the joint venture and the creation of Great Salt Plains, there will be an immediate expansion of the crude system to provide for initial crude gathering and transportation of up to 40,000 barrels a day.
The venture also includes a natural gas STACK platform consisting of the placement and build out of a state-of-the-art cryogenic processing operation in Major County in northwest Oklahoma. The Silver Lake Plant will have initial capacity to process up to 70 million cubic feet of natural gas a day with an expansion capacity of up to 220 MMcf/d. The facility will include more than 130 miles of gas gathering lines and multiple compressor stations and should be in service in the second quarter of 2018.
“Mid-continent producers continue to actively invest in acreage and drilling in the STACK area extending north and west,” said MVP Holdings President and CEO Gary Navarro. “MVP and our investment partners are dedicated to providing the full range of midstream services to our producer community to support this crucial development of energy resources.”
MVP Holdings is a privately owned energy lostics company headquartered in Wichita, Kansas. Energy Spectrum Partners was founded in 1996. Chisholm Oil and Gas LLC was formed in January 2017 with backing of funds affliated with Apollo Global Management LLC.
