[Context: On April 30, EnCap Flatrock-backed Rangeland Energy III announced plans to design, construct and operate new crude oil and condensate pipelines located in the Marten Hills region of north central Alberta to target Clearwater Formation. Further details and related links are below.]
Rangeland Midstream Canada, Ltd. Announces New Pipeline Project; Marten Hills Pipeline System will serve the Clearwater Formation in Alberta, Canada
SUGAR LAND, Texas & CALGARY, Alberta–April 30, 2019–(BUSINESS WIRE)–Rangeland Midstream Canada, Ltd. (”Rangeland Canada”), a wholly owned subsidiary of Rangeland Energy III LLC, today announced its plans to design, construct and operate new crude oil and condensate pipelines located in the Marten Hills region of north central Alberta. The Marten Hills Pipeline System will extend approximately 85 kilometres (52.8 miles) and consist of crude oil and condensate pipelines and related facilities. The system is expected to come into service in the second quarter of 2020.
Rangeland Canada’s new Marten Hills Pipeline System will gather crude oil production from Clearwater Formation in Alberta.
The system is anchored by long-term transportation agreements with three of the region’s largest crude oil producers, who have made a combined minimum volume commitment representing 40 percent of the system’s capacity. The agreements also include acreage dedications totaling approximately 450,000 acres.
The system will gather crude oil production from the Clearwater formation in the Marten Hills region, which is emerging as an extremely economic play with low extraction costs using modern multilateral horizontal drilling. The system will deliver blended crude oil to an existing third-party takeaway pipeline which serves the Edmonton, Alberta, hub and refining market. Condensate will be received from a third-party pipeline and delivered to production batteries for diluent blending.
“Rangeland Energy has a long history of successfully executing safe, reliable midstream projects, and we are excited to announce the addition of the Marten Hills Pipeline System,” said Rangeland Canada Vice President of Business Development Briton Speer. “We are providing a timely and creative midstream solution in an emerging play, alleviating potential infrastructure bottlenecks and allowing our producer customers to concentrate on growing their production. This project and our commitment to providing high-quality transportation services are indicative of our steadfast dedication to our customers and the markets they serve.”
About Rangeland Energy and Rangeland Midstream Canada
Headquartered in Sugar Land, Texas, Rangeland Energy was formed in 2009 to focus on developing, acquiring, owning and operating midstream infrastructure for crude oil, natural gas, natural gas liquids and other petroleum products. The company is focused on emerging hydrocarbon production areas across North America, with a current emphasis on the Gulf Coast and Canada. Rangeland Midstream Canada, Ltd., a subsidiary headquartered in Calgary, was formed in 2016 to serve oil and gas producers in western Canada with a full suite of midstream services including oil and gas gathering, processing, terminaling and transportation. The Rangeland Canada team has significant expertise in designing, constructing and operating midstream assets in the Western Canadian Sedimentary Basin. The Rangeland team represents more than 200 years of combined midstream experience and is backed by growth capital commitments from EnCap Flatrock Midstream.
About EnCap Flatrock Midstream
EnCap Flatrock Midstream provides value-added growth capital to proven management teams focused on midstream infrastructure opportunities across North America. The firm was formed in 2008 by a partnership between EnCap Investments L.P. and Flatrock Energy Advisors, LLC. Based in San Antonio with offices in Oklahoma City and Houston, the firm manages investment commitments of nearly $9 billion from a broad group of prestigious institutional investors. EnCap Flatrock Midstream is currently making commitments to new management teams from EFM Fund IV, a $3.25 billion fund.