Cardinal Midstream III, LLC recently announced that they were beginning construction on their Iron Horse Gathering System in Oklahoma’s Anadarko Basin.
The Iron Horse Gathering System
The system will serve as a North American oil and gas pipeline that spans over 100 miles. The initial system will run through the following counties:
The project will also contain multiple compressor stations and a revolutionary cryogenic processing plant. The company has predicated that this processing plant will be able to process 200 million cubic feet of natural gas each day.
The system is designed to benefit those working in the SCOOP/STACK/Merge play, which is found in Oklahoma. The play is rich in liquid gases, and targets multiple benches in the Woodford and Mississippian pay zones.
The project could also see expansion in the coming months as well. The project is currently anchored thanks to Travis Peak Resources, LLC, which granted long-term acreage to the project. Cardinal III has also said they are in discussions with other producers who would be interested in bringing their assets onto the Iron Horse System.
The company broke ground on the North American oil and gas pipeline in the beginning of February. They plan to commission the first natural gas processing plant sometime between June and September of 2018. Cardinal has partnered with Honeywell’s UOP Russell division to help with a predictable and efficient timeline.
If Cardinal III decides to allow other producers to join the project, it’s reasonable to expect the timeline to increase as the project becomes larger. Currently, the project is funded by a capital commitment of $250 million from EnCap Flatrock Midstream. If other producers drive the project cost by hundreds of millions more, the project will see increased regulation from federal and state agencies.