Thunder Creek Gas Services Announces Start of Construction on 126-Mile Natural Gas Gathering System

Strategic Insights -

Thunder Creek Gas Services, a joint venture between Devon Energy Corporation and KN Energy, Inc., has initiated construction on a 126-mile natural gas gathering system in the Powder River Basin of northeast Wyoming. The system, expected to be operational by fall 1999, will consist of a 126-mile trunkline, low-pressure field gathering systems, and related CO2 removal facilities. With a projected cost of approximately $100 million, the gathering system aims to increase gas gathering capacity in the basin and accelerate coalbed methane development.

Key Takeaways:

  • The 126-mile natural gas gathering system will be constructed in the Powder River Basin of northeast Wyoming, extending from Glenrock to approximately 12 miles north of Gillette.
  • The system will have an initial capacity of 450 million cubic feet of gas per day, supplying service to producers at approximately 500 psi.
  • In addition to providing CO2 removal service, the gathering system will offer gas purchase alternatives and low-pressure gathering service.
  • Completion of this gathering system will significantly increase gas gathering capacity in the basin and should accelerate development of coalbed methane in the Powder River Basin.
  • U.S. demand for natural gas is projected to increase during the next few years, stimulating the transformation of the Powder River region into a top U.S. exploration area.
  • Devon Energy Corporation owns approximately 220,000 net acres in the Powder River Basin and has substantial San Juan Basin coalbed methane development.
  • KN Energy, Inc. is the nation's sixth-largest integrated natural gas company and is the second-largest gas transportation company, with operations in 16 states.

Statistics:

  • The 126-mile natural gas gathering system is expected to be fully operational by fall 1999.
  • The expected total cost of the system is approximately $100 million.
  • The gathering system will have an initial capacity of 450 million cubic feet of gas per day, supplying service to producers at approximately 500 psi.
  • Devon Energy Corporation owns approximately 220,000 net acres in the Powder River Basin.
  • KN Energy, Inc. has operations in 16 states and is the nation's sixth-largest integrated natural gas company.

Sources:

  • PRNewswire, March 4, 1999.
  • Devon Energy Corporation.
  • KN Energy, Inc.