NW Oklahoma pipeline project expanded

Increased drilling activity in northwest Oklahoma has led to an expansion of a planned pipeline project.

Dallas-based Cardinal Midstream III LLC announced the upgrade this week, saying Oklahoma City-based Camino Natural Resource LLC has pledged more than 100,000 acres of its production to Cardinal's planned Iron Horse System.

Camino's pledge boosts the Iron Horse System to about 150,000 acres. Austin, Texas-based Travis Peak Resources also has committed production to the pipeline system, which is designed to service the state's booming STACK, SCOOP and Merge plays.

“Together the dedications from Camino and Travis Peak provide a strong platform for significant and rapid expansion to our gathering footprint,” Tim Roberts, Cardinal's president and chief financial officer, said in a statement. "As we broaden the rich natural gas system, we are also evaluating ways to add complementary crude and dry gas gathering services.”

Cardinal in February announced its Iron Horse System, calling for 100 miles of natural gas gathering pipeline, multiple compressor stations and a cryogenic processing plant able to handle up to 200 million cubic feet of natural gas per day. The project was to be backed by a $250 million commitment from EnCap Flatrock Midstream.

With Camino's commitment, Cardinal is expanding the pipeline system to 150 miles.

"When the system is fully built out with the support of our financial sponsors, we anticipate a significant increase in gathering mileage," Roberts said in an email.

The pipeline system is under construction, and the processing plant is expected online in the third quarter, Cardinal executives said in a statement.