Tumbleweed Midstream said Wednesday it’s acquired the Ladder Creek helium plant and gathering system from DCP Midstream for an undisclosed price, Kallanish Energy reports.
The plant is located west of Cheyenne Wells, Colorado, near the Colorado-Kansas border. The Ladder Creek system is supported by long-term acreage dedications across a 1,000-square-mile area that spans nine counties in Colorado and in Kansas.
Current processing capacity at the Ladder Creek processing plant is 40 million cubic feet of natural gas per day (Mmcf/d). The plant has the capacity to extract and liquefy 1.5 Mmcf/d of helium.
“The acquisition of the Ladder Creek Helium Plant and Gathering System represents a significant opportunity for Tumbleweed Midstream,” said Tumbleweed CEO Durell Johnson. “The U.S. is the world’s largest helium producer. At the same time, the world supply of helium is suffering from a multiyear shortfall. This has boosted prices for natural gas with a high helium content and has begun to raise red flags in industries that depend on helium.”
The plant also produces natural gas liquids and residue gas. NGL are transported via pipeline to the DCP Wattenberg pipeline for transportation to Conway, Kansas, for fractionation. Residue gas is sent via pipeline to CIG Rockies or to regional producers for use as fuel.
The gathering and distribution infrastructure associated with the Ladder Creek system includes roughly 730 miles of pipeline, including: 190 miles of FERC-regulated interstate pipeline; 23 miles of residue gas pipeline; 15 miles of pipeline to flow fuel gas back to producers; 42 miles of NGL pipeline; and 460 miles of gas gathering pipeline.
The Ladder Creek plant and gathering system serves natural gas producers operating in eastern Colorado/western Kansas, which includes the Morrow, Mississippian, Spergen, Chester and Marmaton formations.
The plant was built in 1997 by Union Pacific Resources to separate helium from the natural gas stream and liquefy it for transport to market. DCP Midstream acquired the Ladder Creek system from Union Pacific in 1999.
Tumbleweed Midstream was established in 2019 to focus on the acquisition, operation and growth of the Ladder Creek Helium Plant and Gathering System. Tumbleweed’s Johnson served Union Pacific as the plant’s project engineer and project manager from 1997 to 1999.
This post appeared first on Kallanish Energy News.