Atlas Pipeline Expects Full Utilization at Eagle Ford Processing Plants

Atlas Pipeline Partners Eagle Ford System
Atlas Pipeline Partners Eagle Ford System

Atlas Pipeline acquired Teak Midstream earlier in the year and now expects to reach full utilization at its two processing plants (400 mmcfd) by year-end 2014.

The company's Silver Oak I plant is online with capacity of 200 mmcfd and the Silver Oak II plant (200 mmcfd) will be online in the first quarter of 2014.

Atlas is currently processing 155 mmcfd and expects full utilization of its first plant by year-end and full utilization of both plants by year-end 2014.

The 155 mmcfd being processed represents growth of 20% from the second quarter average of 122 mmcfd.

The company also has plans for a third Silver Oak plant with capacity of 200 mmcfd. The plant is still pending board approval, but it could increase the company's processing capacity to 600 mmcfd sometime in the second half of 2015.


NuStar Planning Eagle Ford Oil Pipeline Expansion - Open Season Started

NuStar Energy Eagle Ford System Map
NuStar Energy Eagle Ford System Map

NuStar Energy has launched a binding open season to determine interest in an expansion of the company's Eagle Ford Shale - South Texas oil system. The expansion will add as much as 100,000 b/d of capacity moving oil to the company's Corpus Christi North Beach facility.

NuStar spent $425 million to acquire assets from TexStar Midstream in late 2012 and those assets will be part of the expansion.

The expansion between the company's Gardendale Terminal in La Salle County and Corpus Christi will be conducted in two phases:

  • Phase 1 - Will add 35,000 b/d of throughput available in the 3rd quarter of 2014
  • Phase 2 - Will add 65,000 b/d of throughput available in the first quarter of 2015

The expansion will raise total capacity in the system to ~200,000 b/d. NuStar is making 90,000 of the 100,000 b/d expansion available to shippers.

The open season continues through noon on August 30, 2013

Read the full press release at

TexStar Midstream Buys Tierra Pipeline & Transportation Assets

Tierra Pipeline Map
Tierra Pipeline Map

TexStar Midstream and affiliated companies have agreed to buy Tierra Pipeline, LP, and Tierra Transportation.

TexStar Midstream Services will operate the Tierra Pipeline and Black Creek Well Services will operate Tierra Transportation. Black Creek Well Services is a sister company to TexStar Midstream.

The primary assets trading hands are:

  • Tierra Pipeline - 140-mile pipeline with right-of-way from San Antonio to Corpus Christi
  • Tierra Transportation - 60 employees and 35 tractor trailers
We have been talking to Tierra on and off for years. The time was finally right for us to move. We are extremely excited about having Tierra Pipeline and Tierra Transportation as part of our asset base and team. We are buying this because we really like the business that Tierra has built and we want to grow it.
— Phil Mezey , CEO of TexStar Midstream and Black Creek
As we have always known, both the Tierra Pipeline and Tierra Transportation assets are strategically located in Central Texas. A multi-line right-of-way that extends from San Antonio to Corpus Christi and intersects the heart of the Eagle Ford Shale has proven to be a unique asset;
— Tierra Companies CEO, Glen Gonzalez

Read the full press release at

Atlas - Teak Eagle Ford Midstream Deal Worth $1 Billion

Teak Midstream Eagle Ford Map
Teak Midstream Eagle Ford Map

Atlas Pipeline Partners has agreed to buy Eagle Ford Midstream assets through a $1 billion acquisition ofTeak Midstream, LLC. Atlas will gain Teak's operated assets and assets that are jointly owned with TexStar Midstream.

Assets acquired in the deal included:

  • 200 MMcfd of cryogenic processing plant (Silver Oak)
  • 200 MMcfd cryogenic processing facility under construction (Silver Oak II)
  • 265 miles of 20" to 24" gathering and residue pipelines with 750 mmcfd of capacity
  • 275 miles of low pressure gathering lines

Atlas will also acquire a 50-75% interest in several assets jointly owned with TexStar Midstream. Atlas is expected to operated the assets once the deal closes:

  • 235 miles of pipeline, including rich gas gathering, header, and residue pipelines
  • 3 miles of NGL pipeline
  • A Co-Gen facility, which will produce power for the Silver Oak complex
We are very excited about the acquisition of TEAK Midstream. We have been looking at the Eagle Ford shale for a number of years and are fortunate to have found what we believe is the ideal entry point. TEAK’s assets are the highest quality and best positioned for growth with minimal capital requirements. The assets are new, highly efficient, and are located in the heart of one of the most prolific plays in North America.
— Eugene Dubay, Atlas CEO


Atlas expects to further expand the assets going forward. Expansion projects include the potential for additional gathering lines and a third 200 mmcfd processing plant.


Teak Midstream's Eagle Ford Gathering & Processing Begin Operations

Teak Midstream Eagle Ford Map
Teak Midstream Eagle Ford Map

Teak Midstream has started operations at its South Texas gathering system and its Silver Oak (200 mmcfd) cryogenic processing plant. Teak has long-term midstream agreements with Comstock Resources, Statoil, and Talisman. With significant commitments, the company already plans to expand its gathering system by 200 mmcfd by the first quarter of 2014.

At the center of the development is Teak's Silver Oak Processing Plant, which is located near the community of Pettus, between Beeville and Kenedy in Bee County. The plant is specifically designed to handle high concentrations of liquid-rich gas. From the plant, residue gas will be transported by a 20-inch, 57 mile pipeline to various interstate pipelines and NGLs will be transported by a 12-inch, three mile pipeline to DCP's Sand Hills Pipeline. The Sand Hills pipeline ultimately delivers NGLs in Mont Belvieu.

“Teak Midstream is well positioned to serve new and existing customers who are pursuing liquids-rich gas in the Eagle Ford and other formations in South Texas. The proximity of our extensive gas gathering systems to escalating drilling activity is ideal, and our processing plant has extremely high NGL recoveries, making it one of the most efficient facilities in the region, which can improve wellhead value for our customers,” said TEAK Co-Chief Executive A. Chris Aulds. “

Teak Midstream's new gathering system actually includes two separate systems:

  • One system is 178 miles of 24-inch and 16-inch pipelines that moves wet gas from Dimmit through Webb, La Salle, McMullen, and Live Oak counties on to the Silver Oak Plant
  • The second system is 22-miles of 20-inch pipe moving rich gas from the Karnes area to the Silver Oak Plant in Bee County