Atlas Starts-Up Stonewall Processing Plant

Source: 5/1/2014, Location: North America

Atlas Pipeline Partners, L.P has brought into service the Stonewall plant in the Arkoma section of the Woodford Shale, which will add capacity to APL's SouthOK system. The Partnership is also accelerating plans to potentially increase the capacity at Stonewall, given increasing activity by Arkoma Basin and South Central Oklahoma Oil Province (SCOOP) producers.

The Stonewall plant, a new cryogenic processing facility on the SouthOK system, has been brought into start-up operations with an initial processing capacity of 120 MMCFD. The plant is processing liquids today in start-up mode and will be fully operational in the coming days. This plant was constructed under the Centrahoma joint venture, which is a joint venture with MarkWest Energy Partners, in which APL owns 60%.

Due to the increase in activity in Southern Oklahoma, the Partnership is expecting to accelerate the timeframe of the planned 80 MMCFD expansion at the new Stonewall plant, bringing its total processing capacity to 200 MMCFD. This expansion will come through additional refrigeration and compression at the plant and will result in total gross processing capacity of 580 MMCFD on the SouthOK system. The capital required to facilitate this expansion is approximately $8-10 million, net to APL, and will also be constructed by Centrahoma. Additionally, construction is continuing on the project to connect the Velma and Arkoma portions of the SouthOK system, which is expected be complete in September of 2014.

Patrick McDonie, President and Chief Operating Officer of the Partnership commented, "In Southern Oklahoma, we are happy to announce the Stonewall plant is up and running and expect an increased pace of utilization of the incremental processing capacity given the permits filed in the Arkoma section of the Woodford shale and positive views on the emerging SCOOP play near Velma."

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