A new natural gas processing plant in Colorado has been commissioned by Oklahoma City’s SandRidge Energy Inc. as the company announced it will help the firm in a part of Colorado where there are no natural gas pipelines.
Advantage Midstream LLC based in Dallas will build the plant next to with a previously announced gas conversion plant.
SandRidge Energy CEO Bill Griffin explained it will be located in the North Park basin.
“As we work toward a long-term solution to get pipe into the basin, we’ve been doing other things, including mechanical refrigeration, which will help reduce the emissions associated with the gas we’re combusting while we’re waiting on the pipeline,” Griffin said in a recent interview with The Oklahoman.
Financial terms were not disclosed.
“Advantage Midstream is pleased to announce another layer of processing services with SandRidge in the exciting North Park basin,” Advantage Midstream CEO John Stephenson said in a statement. “The combination of traditional NGL processing and our conversion services will allow for optimal environmental and economic benefit. We are pleased to continue growing our partnership with SandRidge in the North Park Basin.”
SandRidge has one rig operating in Colorado and drilled five wells in the second quarter. Griffin said the new processing plant is part of the normal course of business and was included in the company’s capital expenditure plan announced earlier this year.
The announcement of the gas plant comes as SandRidge is still considering purchase offers from at least 26 firms, 10 of which have offered to buy all of SandRidge.
