Under the sprawling skies of Wyo., the Powder River Basin is witnessing new signs of midstream relief for oil and gas producers hobbled by a shortfall of pipeline takeaway and gas processing. RMR recently reported on Houston-based Crestwood Equity Partners and its startup of commercial operations at the Bucking Horse II processing plant in Converse Co., as well as a new gathering and processing agreement to provide wellhead services for the basin’s largest producer, Occidental. But another sliver of a silver lining also has emerged over those woebegone Wyo., skies with fresh announcements from Denver-based Meritage Midstream.

Meritage Midstream

Led by a team of seasoned professionals, Meritage Midstream provides oil and gas producers across North America with a full complement of midstream services. Current operations are focused on Wyoming’s Powder River Basin. Services include natural gas gathering, compression, treating and processing; NGL transportation; crude oil gathering, blending and storage; handling produced and flowback water; and rail hub services for outbound crude oil and condensate.

www.meritagemidstream.com

Meritage and its Thunder Creek Gas Services subsidiary have completed commissioning of the Steamboat I processing plant also in Converse—more than doubling the company’s gas processing capacity there. With an initial capacity of 200 MMCFD, Steamboat’s footprint is sizeable enough to accommodate two additional fractionators, and expansion of the plant already looms on the near horizon. A new 60-mile trunk line now connects the Steamboat I to the Meritage 1,300-mile Thunder Creek gathering system, which averaged gas flows last year of 180 MMCFD. The 108-mile Thunder Creek NGL pipeline transported more than 10,000 BPD in 2019 and connects with ONEOK’s Elk Creek NGL line that pushes supplies to Bushton, Kan.
 
Meritage has simultaneously announced a multiyear gathering and processing agreement with a “large independent oil and gas producer “in the Powder River. (Anyone’s guess?) As a pure player in the PRB, Meritage also operates the 180 MMCFD 50 Buttes gas processing plant near Gillette and the 450 MMCFD Buckshot treating plant in Converse.

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