Cardinal Midstream LLC announced that it has a third cryogenic processing plant online in the Arkoma Woodford shale. With 220 million cubic feet of natural gas per day (MMcf/d) of operated cryogenic processing capacity, Cardinal is now the largest natural gas processor in Oklahoma's Arkoma Woodford shale. The new cryogenic processing facility, called the Tupelo Plant, is located in Coal County, Okla., and is capable of processing 120 MMcf/d.
The Tupelo Plant complements the two additional cryogenic processing plants Cardinal operates in the play. The Coalgate Plant is an 80 MMcf/d facility also located in Coal County immediately adjacent to the Tupelo Plant. The Atoka Plant has a capacity of 20 MMcf/d and is located 13 miles to the south in Atoka County, Okla. An NGL pipeline connects the Atoka Plant with the Coalgate and Tupelo facilities, where NGLs are delivered to the ONEOK NGL Pipeline system (NYSE:OKS). The Coalgate and Atoka plants are owned in a joint venture with MarkWest Energy Partners, L.P. (NYSE: MWE). Cardinal is the sole owner of the Tupelo Plant.
"Bringing the Tupelo Plant online is an important step in our effort to address processing bottlenecks in the Arkoma Woodford," said R. Mack Lawrence, president of Cardinal Midstream. "Cardinal is expanding its gathering system and evaluating further processing capacity expansions given the level of drilling activity on dedicated acreage and the quality and production volume we're seeing from the rich gas wells in the play."
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