Blue Mountain Midstream LLC said July 17 it has successfully commissioned its Chisholm Trail III cryogenic gas plant, located in the heart of the prolific Merge/Scoop/Stack plays near Tuttle, Oklahoma on the company’s 80-acre facility in Grady County.

Blue Mountain completed this major processing capacity addition to its Chisholm Trail system at the end of the second-quarter.

State of the art cryogenic processing facility with 250 million cubic feet per day (MMcf/d) of processing capacity and 62,000 horsepower of compression is now online in the Merge/Scoop/Stack plays with 108 miles (173 km) of gathering pipe in service.

The plant has an initial design capacity of 150 MMcf/d with the full 250 MMcf/d to become available by the fourth-quarter of 2018 upon installation of an additional 25,000 horsepower of compression.

Based on producer commitments and anticipated production growth from Roan Resources LLC and other upstream producers, Blue Mountain is currently evaluating a second train of up to 250 MMcf/d of additional capacity.

Once at full capacity, the Chisholm Trail III plant and its related gathering is forecasted to generate annualized EBITDA between $100 million and $125 million. The Chisholm Trail system is processing over 100 MMcf/d and the plant will be capable of processing up to initial capacity level of 150 MMcf/d in the coming weeks to meet producer demands. The Chisholm Trail system also includes interconnections into the Southern Star Central, Enable Gas Transmission and ONEOK Gas Transportation natural gas pipelines. In addition, ONEOK Hydrocarbon is providing NGL transportation from the facility.

The system is supported by a dedicated acreage position of more than 80,000 net acres under long-term contracts with natural gas producers in central Oklahoma.

Based on increased customer drilling activity and demand for additional processing and treating capacity to serve their significant growth plans in the Merge/Scoop/Stack plays, Blue Mountain is evaluating another system expansion with the addition of a second train, which would increase total processing capacity to 500 MMcf/d by late 2019. Additional expansion plans could entail 55,000 horsepower of new compression, more than 130 miles (209 km) of high and low pressure gathering line extensions, and additional delivery interconnects in operation by the end of 2020.