Houston-based Elevate Midstream Partners, in partnership with its financial sponsor, Tailwater Capital, has entered into an eight-year gas gathering and treating agreement with Sabine Oil and Gas Corp., Elevate’s anchor company.
A major Haynesville shale producer in Harrison and Panola counties in Texas, Sabine Oil & Gas Corporation is an independent oil and natural gas company that focuses on the acquisition, development, exploitation and exploration of oil and natural gas properties in the onshore United States.
Elevate’s system was designed to help other producers in moving gas to more attractive markets at the Carthage hub.
As part of the deal, Elevate will construct 19 miles of 16-inch gas gathering pipelines, with the addition of associated laterals, including amine, dehydration and compression facilities in the Carthage, Texas, area with interconnections to downstream takeaway markets.
"With our existing assets strategically located in the core of the Haynesville and Cotton Valley formations, this new pipeline will both expand our footprint and provide access to the competitive Carthage hub markets for our customers,” said Roger Fox, CEO of Elevate.
He noted Elevate will be looking to similarly assist other customers in the region to connect, via their pipeline, to more favorable markets that ultimately will access the increasing Gulf Coast demand.
Elevate owns and operates more than 180 miles of active pipelines and 19,000HP of compression, according to the company. It also operates an 80 million cubic feet per day gas processing plant, and related dehydration and NGL stabilization equipment.
