Williams, Crestwood Midstream commission gas plant in Niobrara Shale

Williams Partners and Crestwood Midstream Partners have announced the commissioning of the Bucking Horse gas processing facility located in Converse County, Wyoming, adding 120 MMcfd of processing capacity in the Powder River basin Niobrara shale play.

The Bucking Horse plant, along with the Jackalope Gas Gathering System (JGGS), is owned through a 50/50 joint venture between Williams Partners and Crestwood Midstream Partners.

The gathering and processing facilities provide services under a long-term, fee-based agreement with Chesapeake Energy Corp. The Jackalope System includes approximately 184 miles of low pressure gathering pipelines supported by a 311,000-acre area of dedication from Chesapeake.

The joint venture expects volumes through the Bucking Horse plant to significantly ramp-up throughout the remainder of the first quarter of 2015 utilizing much of its capacity as existing rich gas production is re-directed from third-party processing facilities and previously curtailed volumes along the Jackalope System begin to flow.

“The Bucking Horse Plant positions us for additional and continued growth in the Niobrara shale,” said Walter Bennett, senior V.P., Williams’ West operating area. “Adding this asset to the Williams portfolio enhances the services we provide to Chesapeake. It also expands the existing Williams footprint in Wyoming that includes over 2.2 Bcfd of combined processing capacity at Opal and Echo Springs.”

Heath Deneke, president, natural gas business unit of Crestwood, commented, “We look forward to working with Williams as our joint venture partner and providing Chesapeake with reliable gathering and processing services.”

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