Don't Stop 'Til You Get Enough (Capacity) - Natural Gas Projects Vie to Provide SCOOP/STACK Takeaway Capacity

Rising crude oil production in the SCOOP and STACK oil and NGLs shale plays is driving the development of processing and natural gas pipeline capacity for associated natural gas volumes from the region. Earlier this month (Wednesday, May 3), Enable Midstream announced Project Wildcat, a 400-MMcf/d rich gas takeaway project. On the same day, SemGroup Corp. announced the Canton Pipeline to provide an initial 200 MMcf/d (and up to 400 MMcf/d) of capacity between the STACK play and its processing facility in northern Oklahoma. Enable last month also announced a firm shipper commitment on another of its takeaway projects — the Cana and STACK Expansion (CaSE). At the same time, late last month (on April 27), NextEra withdrew plans for its 1.2-Bcf/d Sooner Trails Pipeline. Today, we provide an update of the various projects vying to move associated gas from the SCOOP/STACK to downstream demand markets.

The South Central Oklahoma Oil Province and Sooner Trend Anadarko Canadian Kingfisher shale plays in central Oklahoma –– better known as SCOOP and STACK –– are attracting increasing amounts of investment dollars from producers and midstreamers. The plays sit in an 11-county geographic area in central Oklahoma where drilling is targeting the oil-rich Woodford and Meramec shale formations of the Anadarko Basin (see Scoop-y Doo and All Come to Look for a Meramec).  The SCOOP play is a 3,300-square-mile area in the southern extension of the Woodford Shale’s Cana field in south-central Oklahoma across six counties:  Grady, Stephens, and Garvin Caddo, McClain and Murray. The STACK play sits just north of there (northwest of Oklahoma City), with activity centered around Kingfisher, Blaine, Dewey and Custer counties, plus some activity in portions of Canadian county (see Stardust Part 1 for a map).

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Several companies in their latest earnings reports indicated a shift in resources toward increasing activity in these counties. Continental Resources, Newfield Exploration, Devon Energy and Linn Energy are among those who’ve announced increased investment in drilling in the region. Additionally, last Wednesday (May 10), Plains All American (PAA) announced plans to expand its existing STACK Pipeline, a crude oil line it owns with Phillips 66 Partners. The pipeline — which currently extends east from PAA’s Cashion storage terminal in the southeastern corner of Kingfisher County to Cushing, OK — would be looped to expand its capacity to 250,000 barrels per day (Mb/d), from 100 Mb/d currently. Additionally, the origin point of the pipeline would be extended 35 miles west of Cashion to eastern Blaine County, allowing greater access to STACK production areas. PAA also has said the line’s capacity can be further expanded to 350 Mb/d by installing more pumps if market conditions warrant it. The project is targeting completion in fourth-quarter 2017.

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