Canyon Midstream Partners Begins Development of Permian Basin Midstream System
Houston, TX – January 7, 2014 – Canyon Midstream Partners, LLC (“Canyon”) today announced it has commenced development of a natural gas gathering, processing and treating system in the Permian Basin (the “James Lake System”). The James Lake System is anchored by a 10-year gathering and processing agreement with one of the world’s largest oil and gas companies.
The James Lake System will include a cryogenic gas processing plant in Ector County, Texas (the “James Lake Plant”), with an initial processing capacity of 70 million cubic feet per day and treating capabilities for natural gas containing hydrogen sulfide and carbon dioxide. To supply the plant, Canyon is developing 40 miles of high pressure gathering trunklines and three compressor stations which will connect to low pressure field gathering systems that Canyon is constructing for its anchor customer in Ector County and Andrews County, Texas. When completed in late 2014, the James Lake System will deliver residue gas into the El Paso Natural Gas pipeline and offer interconnections to multiple NGL lines in Ector County.
Michael Walsh, President of Canyon, stated: “Canyon is pleased to have the opportunity to enhance our initial customer’s current and future production in Andrews and Ector Counties with the development of our James Lake project. We believe that additional gas gathering, compression, processing and treating capacity in the Permian Basin is necessary for our customers to realize the potential of their resources and reserves. Canyon is in advanced discussions with producers controlling acreage and production to support additional treating and processing capacity at the James Lake Plant. Ultimately, we expect the current James Lake project will be the first phase of a distributed and integrated gathering and processing system in the Permian Basin, where Canyon will provide our customers with safe, reliable, operationally efficient and commercially responsive midstream services.”
Canyon was formed by former senior management of Delphi Midstream Partners, LLC and Laser Northeast Gathering Company, LLC. The Canyon team is led by Michael Walsh, President & CEO; Mark Fuqua, SVP Business Development; and Dale Harper, SVP Engineering & Operations. Inquiries regarding the James Lake System or Canyon’s midstream services should be directed to info@canyonmidstream.com.
About Canyon Midstream Partners, LLC
Canyon is a Houston-based company formed to acquire, develop and operate midstream energy companies and assets. Canyon is backed by $300 million in equity commitments from Kayne Anderson Energy Funds, Canyon management and certain institutional investors. Canyon seeks opportunities to create long-term value for its customers, investors and employees through operational improvements, organic and strategic growth and efficient capital investment. Canyon currently operates gathering and processing assets in the Permian Basin, East Texas and the Tuscaloosa Marine Shale. For more information, visit www.canyonmidstream.com or contact Canyon at info@canyonmidstream.com.
About Kayne Anderson Energy Funds
Established in 1998, Kayne Anderson Energy Funds, with offices in Houston and Los Angeles, provides private equity financing primarily for high-growth oil and gas companies across North America. The firm has raised six dedicated energy private equity funds totaling over $4.3 billion in committed capital and invested in more than 80 portfolio companies. Kayne Anderson Energy Funds is a part of Kayne Anderson Capital Advisors, L.P., a leading independent alternative investment management firm founded in 1984 with over $25 billion in assets for institutional investors, family offices, high net worth and retail clients in eight offices across the United States. Kayne Anderson Capital Advisors focuses on niche investing in upstream oil and gas companies, energy infrastructure, specialized real estate, middle market credit, growth private equity and distressed municipal opportunities. For more information, please visit www.kaynecapital.com.