Clearfork Midstream Expanding Haynesville Gathering System with Two New Pipelines
(P&GJ) — Clearfork Midstream LLC announced the signing of several new producer-customer commercial agreements and treating capacity expansions on its Holly System in North Louisiana.
The announcement highlights Clearfork’s continued commercial success and growth following its acquisition in February 2022 of a natural gas gathering and treating platform serving core areas of the Haynesville Shale in North Louisiana and East Texas. Clearfork is actively developing new midstream gathering and treating projects in addition to increasing downstream takeaway optionality for Haynesville producers.
In connection with a long-term acreage dedication finalized in August 2022, Clearfork is expanding the footprint of its Holly System by constructing a 24-inch diameter pipeline to the east side of the Red River in northeast Red River Parish, Louisiana. On the west side of the Holly System, Clearfork is constructing a 16-inch diameter pipeline that will expand Clearfork’s capacity in the Spring Ridge area in Caddo Parish, Louisiana, to service expected customer production growth in 2023. As part of these expansions, Clearfork plans to build new interconnects for additional takeaway capacity and downstream market optionality for customers.
In conjunction with the gathering expansion, Clearfork is increasing its overall treating and compression capacity across its Holly System. Treating capacity at Clearfork’s Holly 3 facility will increase with the installation of new contactor towers, optimization projects, and additional compression across the system, which will provide lower-pressure service while also meeting the pressure requirements of downstream pipelines.
Treating capacity at Clearfork’s Holly 6 facility will increase with the installation of a recently acquired amine plant and related assets. Looking beyond these expansion projects, Clearfork also owns idle amine treating assets that could, when paired with additional commercial activity, further increase treating capacity to bring the total treating capacity across Clearfork’s Holly System to approximately 1.8 Bcf/d in 2023.
“We’re pleased to announce these new commercial agreements and expansion projects on our Holly System, which provides our Haynesville producer customers with access to premium downstream markets,” Clearfork CEO Kipper Overstreet said. “These expansions strengthen our position in the Haynesville, where we remain focused on deploying growth capital and developing the infrastructure needed to serve our customers’ needs. We’re committed to making additional improvements as we strive to exceed customer expectations and industry standards.”
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