Teak Midstream Adding 200 Miles of Pipe & a 200 mmcfd Processing Plant - $280 Million


Teak Midstream joins the list of Eagle Ford pipeline and midstream companies that are making major expansion in South Texas. Teak plans to add more than 200 miles of pipelines to its gathering system and residue delivery system.  The company will also add Silver Oak Plant, a 200 mmcfd of cryogenic processing plant, in Bee County, near Pettus.

The project is supported by 10-year firm gathering and processing agreements with both Talisman Energy and Statoil Natural Gas. The gathering system will consist of two high pressure systems.

  • 125 miles of 24 inch pipe with 600 mmcfd of capacity - Two segments named the La Salle Lateral and the Bee Express
  • 20 miles of 20 inch pipe with 400 mmcfd of capacity - Karnes Lateral

The 125 miles system will originate in La Salle County and move gas to Teak's new Silver Oak Plant in Bee County. Teak will own 100% of the first 50 miles and the next 75 miles will be jointly owned with Texstar Midstream.

Teak Residue Gas and NGL Pipelines

51 miles of 20 inch pipe will be used for residue gas coming from the Silver Oak Plant for delivery on major natural gas pipelines - Tennessee Gas, Texas Eastern, and NGPL.

The company will also construct a 12-inch NGL pipeline that will deliver liquids to DCP's Sand Hills NGL Pipeline

“We are extremely pleased to have negotiated agreements with Talisman and Statoil, whose commitments fully support our project. We look forward to a long-term working relationship with these outstanding energy companies as we build our asset base in the Eagle Ford,” said TEAK Co-Chief Executive A. Chris Aulds. “