Canyon inks Permian Basin midstream gas deals with Apache, ExxonMobil

Canyon Midstream Partners has entered into gathering and processing agreements with XTO Energy, a subsidiary of ExxonMobil, and Apache for midstream services on Canyon's James Lake System.

In addition, Canyon said it expanded its cryogenic gas processing plant in Ector County, Texas (the James Lake plant) from 70 million cubic feet per day (MMcf/d) to 100 MMcf/d by adding a 30 MMcf/d cryogenic turbo expansion train.

The James Lake plant is part of Canyon's James Lake System, which currently consists of 60 miles of 12" trunkline and six field compressor stations providing low pressure gathering services to Ector, Andrews, Martin, Dawson and Gaines counties, Texas.

When completed in late 2014, the James Lake System will deliver residue gas into the El Paso Natural Gas pipeline and deliver NGLs to the Sand Hills pipeline and the Chaparral pipeline in Ector County.

Canyon is also developing Phase II of the James Lake System, which will consist of a second 100 MMcf/d cryogenic gas processing plant in Martin County and 60 additional miles of 12" trunkline, which will expand the system's service territory into Howard and Borden counties, Texas. Canyon expects Phase II to commence operations in the first half of 2015.

"We appreciate the interest that the producer community is demonstrating in our James Lake project, and Canyon is pleased to have the opportunity to provide midstream services to world-class companies such as XTO and Apache," said Michael Walsh, CEO of Canyon.

"Canyon's vision is to create a distributed and integrated midstream system in an area of the Permian Basin where the current and potential production volumes exceed the capacity of the existing infrastructure," Walsh added. "We measure our company's success by providing XTO, Apache and each of our customers with safe, reliable, operationally efficient and commercially responsive midstream services."

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