February 2020, Vol. 247, No. 2


Outrigger Expands in Williston Basin with Commitment from XTO

(P&GJ) — Private midstream energy company Outrigger Energy II said it is constructing a 70-mile gathering system and cryogenic plant in North Dakota to service XTO Energy natural gas production under a long-term, definitive gathering and processing agreement

(photo: Outrigger Energy II)

Denver-based Outrigger, which specializes in greenfield project development, said it has already initiated construction on the 70-mile, 20- and 24-inch diameter, high-pressure, rich gas pipeline and associated 250 MMcfd cryogenic gas processing plant.

The system originates in eastern Williams County and terminates at processing plant west of Williston, N.D. The system is planned to be operational in December 2020, and Outrigger said it already has plans for 200-MMcfd expansion that would boost total gas processing capacity of the plant to 450 MMcfd.

Outrigger will construct, own and operate the cryogenic processing plant and gathering system. The high efficiency plant features ethane recovery and rejection capabilities that will provide direct market access to the Northern Border Pipeline system for residue gas and the ONEOK NGL pipeline system for natural gas liquids, Outrigger said. Future NGL fractionation facilities may be added to provide finished NGL products for local markets, it said.

“We are grateful XTO has entrusted Outrigger to build a gathering system with substantial capacity and state-of-the-art facilities that will assist XTO with execution of its significant development plans in Williams County," Outrigger CEO Dave Keanini said.

"Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity," Keanini said. "Moreover, this additional midstream capacity for gas production north of the Missouri River allows the State of North Dakota to make strides towards its goal of minimizing gas flaring in the Basin."

Outrigger Energy II is a full service midstream company with a current focus on liquids-rich natural gas and crude oil infrastructure in the DJ Basin of Colorado and Wyoming and the Williston Basin. It is supported by equity commitments from NGP Energy Capital Management and an entity affiliated with private investor Brion G. Wise, who founded Western Gas Resources in 1971 and served the company in various executive and board positions until its sale to Anadarko Petroleum in 2006 for $5.3 billion.

Outrigger I developed assets in the Delaware, Midland and Powder River Basins starting in 2014. Outrigger sold its Delaware and Midland assets to Targa Resources in March 2017 and the Powder River Basin asset was sold to Tallgrass Energy in August 2017.

Founded in 1988, NGP is a private equity firm making direct equity investments in the energy sector with $20 billion of cumulative equity commitments.

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