American Oil and Gas Reporter - June 2015 - 61

SpecialReport: Permian Basin Update
is a long-term growth opportunity for
our company, so we are continuing to invest in our team, processing assets, and
pipeline footprint in anticipation of further
production growth," Walsh says.
Phase two of the James Lake system,
which is under development in Andrews
County, will add a second cryogenic processing plant with 100 MMcf/d capacity
and additional trunk line to expand the
system's service territory into Lea County,
N.M., and Martin and Howard counties,
Tx., Walsh says. Canyon expects phase
two to begin operations next year.

Canyon Midstream Partners LLC sees long-term growth opportunity for its Permian
Basin midstream operations. "We are continuing to invest in our team, processing assets, and pipeline footprint in anticipation of further production growth," affirms President and Chief Executive Officer Michael Walsh.

advancement in horizontal drilling and
advanced completion processes," Conway
muses. "Once this market comes back or
even maintains for oil, the natural gas
comes with it. In order for the oil to
move, the gas must move. We feel this
project gives an upper hand with infrastructure in the area for the producers to
sell their gas. We can process it and give
them the ability to get to a really nice
market through Waha."
New Permian Player
Canyon Midstream Partners LLC has
made its way into the Permian Basin
through its James Lake Midstream System,
which began operating in December, says
President and CEO Michael Walsh.
He says Canyon was formed to acquire,
develop and operate midstream energy
companies and assets with $300 million
in equity commitments from Kayne Anderson Energy Funds, Canyon's management, and certain institutional investors.
Phase one of the James Lake system,
which is now complete, includes a 105
million cubic-foot-a-day cryogenic gas
processing plant capable of treating sour
gas in Ector County, Tx., six field compressor stations, 60 miles of 12-inch trunk
line, and 20 miles of low-pressure gathering lines in Ector and Andrews counties,
Walsh details.
"This project is the only thing we
have in the Permian Basin, so it's pretty
neat for us," he says. "We certainly are

interested always in opportunities to expand our footprint and commercial activities, so we are excited about it."
The James Lake project came on line
less than 12 months after Canyon executed
its first processing agreement in the Permian
Basin, Walsh points out. The amount of
interest in the project inspired Canyon to
increase the initial processing capacity of
the James Lake plant by more than 300
percent during construction, he reveals.
"Canyon believes the Permian Basin

Expanding Footprint
Following its formation through a
marriage of Crosstex Energy and Devon
Energy Corp.'s midstream holdings, EnLink Midstream continues its strategy of
expanding its Permian Basin gas gathering
and processing capabilities through organic
growth and acquisitions, while also
expanding into crude oil transportation
and marketing, summarizes Steve J.
Hoppe, executive vice president and president of the company's gas gathering,
processing and transportation business.
In March, the company completed its
$600 million acquisition of Permian-centered Coronado Midstream Holdings LLC
and its natural gas gathering and processing
facilities. Earlier, EnLink signed a definitive agreement to acquire LPC Crude
Oil Marketing along with its oil gathering,
transportation and marketing logistics
operations in the Permian Basin.

Formed through a marriage of Crosstex Energy and Devon Energy's Corp.'s midstream
holdings, EnLink Midstream has embarked on expanding its Permian Basin midstream
capabilities through organic growth and acquisitions. Thus far it has completed the purchase of Coronado Midstream Holdings LLC and LPC Crude Oil Marketing.

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American Oil and Gas Reporter - June 2015

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