Black Bear to Provide ‘Dry’ Gas Gathering Service
Black Bear Midstream signed a contract to provide “dry” gas gathering service beginning in late 2018. The six-year agreement includes “a significant volume commitment” and extends Black Bear’s business beyond its core of natural gas processing, the company said.
Black Bear owns and operates a 140 MMscf/d cryogenic gas processing plant in Caddo Parish, La., high-pressure gas gathering network and a 40-mile NGL pipeline that extends into DeSoto Parish, La.
“We are excited to expand our business to include dry gas gathering,” which operates Black Bear on behalf of Oaktree. “There has been significant growth in dry gas drilling within our catchment area and producers are seeking reliable, scalable gas gathering service,” said Rich DiMichele, president and CEO of Palmilla Energy, LLC, which operates Black Bear.
Many of the older gathering systems, he added, were not designed for the type of growth experienced from Haynesville drilling. Black Bear also recently received approval to expand its gas processing plant by 200 MMscf/d.
Several producers in East Texas and along the Louisiana state line are drilling rich gas wells in response to increasing demand for NGLs, particularly ethane.
“With ethane recoveries over 90% at our processing plant, Black Bear has a clear competitive advantage that creates significant value for its customers,” Boeker said. He added new steam cracker capacity capable of consuming nearly 900,000 bpd of ethane is scheduled to come on line over the next several years.
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