ONEOK supplier doubling natural gas capacity in Wyoming

A Denver company that supplies a large amount of  natural gas liquids to ONEOK in Oklahoma is in the processing of more than doubling its natural gas processing capacity at its supersytem in Wyoming’s Powder River Basin.

Meritage Midstream Services II, LLC announced the construction of Steamboat I, a new plant that will have a capacity of 200 million cubic feet a day. It should come into servie early in the third quarter of 2010. Once it does, it will bring Meritage Midstream’s total processing capacity in the basin to 380 MMcf/d.

The company said the Steamboat complex is large enough to accommodate two more 200 MMcf/d cryogenic processing plants as customer demand warrants.

The plant is located in the southern part of the basin and complements the company’s 50 Buttes plant near Gillette, Wyoming which is about 100 miles north of the Steamboat complex. The plant is still under construction and nearing completion allowing the connection of a 20-inch line to Meritage’s Thunder Creek gas gathering system.

Steamboat I will connect to the Wyoming Interstate Company mainline system for residue gas. NGLs are flowing to ONEOK and Phillips 66. Meritage said the construction of the new plant is supported by multiple long-term acreage dedications of more than 1 million acres.

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