The plant, located near Tuleta, has 200 million cubic feet per day of processing capabilities.
The product that the plant processes is a “co-mingled mixture of natural gas and natural gas liquids (NGLs),” according to Chris Aulds, co-chief executive officer of TEAK Midstream.
The product is being brought to the plant via two main lines. One is a 178-mile line that comes from the west and travels east across Dimmit, Webb, LaSalle, McMullen and Live Oak counties before entering the Bee County plant. The other line starts in Karnes County and travels west toward the plant.
Once at the plant, all the product is processed, leaving two separate end products. One of those products is methane or dry natural gas and is ready for market consumption upon leaving the plant. It is delivered into a pipeline where it can be transferred to market.
The other product resulting from the processing is still a mixture of liquid gases that needs further refinement before it reaches a marketable state. That mixture of liquid gas is delivered into a separate pipeline that transfers it to the DCP Sand Hills pipeline, where it is then taken to Mont Belvieu (near Houston) to undergo a fractionation process which separates the natural gas liquids into their individual components (ie ethane, propane, butane, etc.) .
TEAK has agreements signed with Statoil, Talisman, Comstock and other companies to process their product, but the plant is still not up to its full daily processing capabilities.
“We still have some capacity,” Aulds said. “Based on current commitments, we still have short- and long-term space available.”
Even though the Silver Oak plant hasn’t reached its full capabilities, Teak Midstream is already looking ahead to the future.
“TEAK plans to expand the gas processing capacity on its system by 200 million cubic feet per day by the first quarter of 2014 based on volume commitments to date and increasing demand to process liquids-rich gas from the Eagle Ford play as well as from the Buda, Pearsall, Olmos and Escondido formations,” the company said in a press release in late November.
Aulds said the company ordered another processing plant a couple of months ago and it will be delivered to the Silver Oak site in the summer of 2013 with a completion and operating date of the first quarter of 2014.
“There is enough production to justify the processing facilities,” Aulds said.
The new plant will have the exact same specs as the one that is finished, and it will be placed on the same property as the current plant.
TEAK owns 205 acres where the current plant is located and plans to build the next plant farther back from the road.
TEAK has expanded in other ways as well. The company has partnered with TexStar Midstream to expand their western pipeline an additional 45 miles into Webb and Dimmit counties.
Aulds said this latest edition to the company’s growing number of pipelines should be finished by the end of January 2013. It will help the company better serve current clients and possibly attract more clients.
Aulds said when looking for a midstream processing company, potential clients want “whoever can provide them with the most timely and efficient process at the best cost.”
The Silver Oak plant and the plant that will be starting operation in 2014 are top of the line in terms of technology and efficiency, he said.
“The new facility can get 92 to 93 percent of the ethane stripped out of the gas,” Aulds said.
As TEAK continues to grow its operations in South Texas, Bee County and the surrounding area will continue to benefit.
Aulds said the current plant employs 23 people and is estimated to bring in $325,000 in tax revenue in this county alone.
With the next plant to be completed in 2014, all those numbers will increase greatly.