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    Meritage Launches New Gas Plant in Wyoming


The plant has more than doubled the midstream operator's gas processing capacity.

by: Joseph Murphy

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Meritage Launches New Gas Plant in Wyoming

Denver-based Meritage Midstream Services has more than doubled its gas processing capacity in Wyoming's Powder River basin to over 380mn ft3/day, after launching a cryogenic processing plant, it reported on March 4.

The Steamboat-1 plant in Converse county, which Meritage described as state of the art, can handle up to 200mn ft3/day of gas. It complements the company's 50 Buttes plant, around 161 km north in Campbell county. The area could accommodate two more plants, the company said, if demand justifies them.

Meritage also noted it had completed a 97-km pipeline connecting the Steamboat-1 plant with its Thunder Creek gas gathering system. Both Steamboat-1 and 50 Buttes are connected to the Wyoming Interstate Co.'s Medicine Bow Lateral pipeline.

Furthermore, the company announced it had entered into a major, multi-year gathering and processing arrangement with an unidentified large, independent oil and gas producer working in the Powder River basin. The deal will provide Meritage with a minimum volume commitment from "a high-quality, investment-grade counter-party supporting a substantial portion of the company's gathering and processing capacity," it said.

Besides its processing capacity, Meritage controls 2,575 km of gas gathering pipelines, 193 km of natural gas liquids (NGL) pipeline and 168,000 horsepower of compression capacity. The company's network dealt with over 170mn ft3/day of gas and 10,000 b/day of NGLs last year. It expects to increase volumes handled by 30% in 2020.