Eagle Rock Energy Partners, L.P. announced the successful startup of its previously announced state-of-the-art 60 MMcf/d cryogenic processing facility in Hemphill County, Texas, in the heart of the prolific Granite Wash play (the “Woodall Plant”).
The Woodall Plant is strategically located on a 40-acre site owned by Eagle Rock in the center of the Partnership’s existing high-pressure gathering system near multiple residue gas pipeline outlets. Eagle Rock also constructed other intra-system pipeline enhancements in the immediate area to further facilitate product gathering, transportation and marketing to and from the Woodall Plant. The supporting infrastructure and plant site were designed to accommodate one or more additional expansions.
The Woodall Plant is currently flowing approximately 40 MMcf/d and is anticipated to be capable of meeting its full capacity of 60 MMcf/d over the next several weeks. As a result of the incident reported on April 30th, natural gas has been temporarily diverted from the Partnership’s Phoenix-Arrington Ranch plant to the Woodall Plant to accommodate Eagle Rock’s producer customers’ natural gas volumes.
With the completion of the Woodall Plant and the near-term resumption of processing capabilities at the Phoenix-Arrington Ranch plant, Eagle Rock will have approximately 190 MMcf/d of high efficiency cryogenic processing capacity serving the Granite Wash play.
The construction of the Woodall Plant and associated gathering and compression cost approximately USD 72 million and is expected to be immediately accretive to the Partnership’s distributable cash flow.
