PennTex Completes Cryogenic Natural Gas Processing Plant in Louisiana

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Researched by Industrial Info Resources (Sugar Land, Texas)--PennTex Midstream Partners LP (NASDAQ:PTXP) (Houston, Texas) reported Monday the completion of its 200 million cubic-foot-per-day (cf/d) Mt. Olive cryogenic natural gas-processing plant, located at Ruston in northern Louisiana. Along with related on-site liquids handling facilities as well as residue gas and natural gas liquids (NGL) pipelines, the plant is now in service. Industrial Info is tracking two projects at the Ruston site, with a combined value of $200 million.

PennTex said the plant's 14-mile residue gas pipeline has throughput capacity of about 400 million cf/d. It provides market access for residue natural gas from the partnership's processing plants. The facility's 41-mile NGL pipeline has throughput capacity of more than 36,000 barrels per day and provides transportation to downstream markets.

President Rob Bond said in a press statement the project was delivered on time and on budget. The facility increases PennTex's natural gas-processing capacity to 400 million cf/d at its Terryville Complex.

"The addition of the Mt. Olive plant positions us for continued growth across the Terryville Complex," Bond added.

Construction of the $100 million project, which processes gas from the Haynesville Shale, kicked off in second-quarter 2015. UOP Russell, part of Honeywell International Incorporated (NYSE:HON) (Morristown, New Jersey), served as the project's engineering, procurement and construction (EPC) contractor. Buffalo Gap Instrumentation and Electrical Company (Buffalo Gap, Texas) served as electrical subcontractor.

The project marks the second phase of development of PennTex's Terryville Complex. The first phase, completed in May 2015, included the 200,000-cf/d Lincoln Parish cryogenic natural gas-processing plant, and 31 miles of related natural gas and residue gas pipelines.

PennTex is performing market analysis for the addition of a second 200,000-cf/d cryogenic train at the Ruston site, with a total investment value of $100 million. Construction would begin in second-quarter 2016, with completion in fourth-quarter 2017.

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