Stakeholder Midstream to Double Gas Capacity in Permian with Second Processing Train

(P&GJ) — Stakeholder Midstream LLC said on Oct. 26 that it reached a final investment decision (FID) on the installation of a second treating and processing train (Train II) at its Campo Viejo facility. The installation of Train II will double the current inlet gas capacity from approximately 80 MMcf/d to approximately 160 MMcf/d.

“The thing that has been the most rewarding is working with like-minded producers who are focused on the environment and continue to drive ever improving well results,” Gaylon Gray, co-CEO of Stakeholder Midstream, said. “We are excited to be able to expand our system capabilities to better meet their needs and to further our efforts towards reducing our carbon intensity.”

Stakeholder’s Campo Viejo Train II will support the continued development of the Horizontal San Andres in Yoakum County, Texas, Lea County, New Mexico, and other surrounding counties. Train II will include front-end liquid handling, an amine treater, a cryogenic processing plant, a nitrogen rejection unit and additional sequestration compression. In anticipation of reaching FID, Stakeholder began ordering long-lead equipment items in late summer 2022 and plans to commission Train II by January of 2024.

In addition to adding incremental treating and processing capacity, the installation and commissioning of Train II will also provide immediate, tangible environmental benefits. The additional capacity and redundancies created by Train II will further reduce methane emissions and result in additional volumes of CO2 being captured and permanently sequestered in Stakeholder’s Pozo Acido well, which recently received approval from the U.S. Environmental Protection Agency for its MRV (Monitoring, Reporting and Verification) Plan.

The San Andres is one of the oldest and most prolific formations in the United States. Producers began to breathe new life into the play through horizontal drilling and modern completion techniques in 2014 and 2015, buoyed by compelling economics that compare favorably to all other North American basins. Since then, well results in the San Andres have continued to improve, and oil and gas volumes have significantly increased as producers refine the way that they drill, complete and operate these wells.

Stakeholder originally partnered with its producer customers in 2017 by implementing a crude oil gathering system that has reduced crude oil truck traffic by removing over 200,000 truckloads from local roads and highways, replacing them with a safer and environmentally conscious solution to transport crude oil to market. In order to mitigate growing methane and carbon emissions in the region, Stakeholder further collaborated with its producer customers to commission the original natural gas treating and processing train at its Campo Viejo facility in 2019. Train II was necessitated by the strong results and continued development of the Horizontal San Andres.



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