based Valiant Midstream to build natural gas system in SE Oklahoma
Executives from Oklahoma City based Valiant Midstream LLC said Wednesday the company has begun construction on a 100 mile natural gas gathering system designed to stretch across Hughes, Coal and Atoka counties and parts of Pittsburg, Pontotoc and Seminole counties.
The project also includes a cryogenic processing plant with a capacity of 200 million cubic feet of natural gas per day that is expected to be operational by year’s end. The system is the first major project by the Oklahoma City company founded in July 2017.
“This is an outstanding opportunity,” Valiant CEO Brandon Webster said Wednesday. “This project is driven by enhanced completions in the region. This basin has been historically prolific. We’re excited about watching this unfold and being a big part of it as an early mover in the basin to help make sure the natural gas and NGLs (natural gas liquids) are marketable in the region.”
Valiant has 10 employees but plans to hire about 200 contract workers for the project construction, and add 30 to 40 full time employees by the time the project is operational, Webster said.
The project is designed to process new production in an area of the Arkoma Basin known as the Arkoma STACK or the East STACK. Producers in the area are using similar techniques to drill into the same rock layers that have fueled the ongoing drilling boom in central and northwest Oklahoma’s STACK and SCOOP fields.
“Our focus is the Arkoma STACK,” Webster said. “We want to put all of our resources in it and get it up and functioning on time to deliver premium processing in the basin for our customers.”
The region is home to historic natural gas production, but in recent years it has attracted increasing interest from horizontal well drillers and the companies that support them.
Edmond based Tall Oak Midstream in September 2017 announced a $400 million natural gas gathering and processing facility in the region. Webster said the growing field has enough potential to support multiple projects.
“The gas forecasts we’ve seen indicate a significant lack of gathering and processing in the basin,” he said. “Further investment is needed for further gas and NGL takeaway. Valiant intends to be part of that effort.”
The Valiant project is backed by long term commitments from Corterra Energy LLC and Canyon Creek Energy Arkoma LLC. The two Tulsa based producers combined have committed more than 1.8 million acres within an area of mutual interest to the project.