Williams Partners L.P. and Crestwood Equity Partners LP have announced a major expansion of the Jackalope Gas Gathering System (JGGS) and associated Bucking Horse gas processing facility in the Powder River Basin (PRB) Niobrara Shale play. The expansion will increase processing capacity to 345 million ft3/d by the end of 2019 to meet growing customer demand in the PRB.
As part of the expansion, the current capacity of the Bucking Horse plant in Converse County, Wyoming, will be increased from 120 million ft3/d to 145 million ft3/d by the end of 4Q18. The expansion also includes plans to add a second plant on the current Bucking Horse footprint by the end of 2019 – adding an additional 200 million ft3/d to JGGS.
The JGGS, which includes the Bucking Horse gas processing plant, is owned through a 50/50 joint venture between Williams Partners and Crestwood Equity Partners. The gathering and processing facilities provide services under an agreement with Chesapeake Energy Corp. that is supported by a 358 000 acre area of dedication from Chesapeake.
As a result of the recent discovery of multiple productive oil-saturated formations, PRB is experiencing a resurgence in activity as producers increase testing and development activities. Currently, there are 19 rigs operating in the PRB, primarily targeting the Turner, Frontier, Mowry, Sussex and Niobrara formations. This has resulted in an increasing need for wellhead services and midstream infrastructure in the basin. Based on the increasing productivity of the Turner and Niobrara formations and the current level of rig activity within the joint venture’s dedicated acreage, volumes are expected to approach the full capacity of the expanded Jackalope System by 2021.