Mustang Fuel announces $65 MM midstream investment

OKLAHOMA CITY — Oklahoma-based Mustang Fuel Corporation announced that its midstream subsidiary Mustang Gas Products, LLC is undertaking a significant $65 MM capital program aimed at increasing the capacity, efficiency and reach of its midstream assets.

Photo courtesy of Mustang Fuel Corporation.

According to President and CEO Carey Joullian, this infrastructure investment is about being able to provide high quality service to its producers, particularly in the competitive environment of what’s known as the STACK (Sooner Trend Anadarko Basin Canadian and Kingfisher).

MGP’s capital spending program is already underway and within the next 18 mos will result in increased system-wide gathering capability and increased plant capacity—to more than 225 MMcfd. Scheduled improvements include upgrading horsepower, replacing older equipment, installing new pipe and adopting new technologies for process, efficiency and control enhancements.

MGP currently operates a “super system” consisting of four cryogenic gas processing plants, a straddle plant, more than 4,200 mi of pipe and 110,000 horsepower of compression spread over 10 counties in central and north central Oklahoma. The majority of MGP’s “footprint” is in Oklahoma’s STACK play and is concentrated in Kingfisher, Blaine, Canadian, Garfield and Major counties, where MGP gathers gas from nearly 2,000 sections. MGP can currently process up to 175 MMcfd and offers both high-pressure and low-pressure gathering. MGP also connects to multiple pipelines, allowing for increased optionality, and has contracted for 70 MMcfd of firm takeaway capacity.

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