Azure Midstream Energy, a Houston-based midstream natural gas gathering and processing company, began production at its Fairway gas processing plant in San Augustine County, Texas
According to the firm, The James Lime formation in the Haynesville Shale area in East Texas has rich associated natural gas
that requires processing to remove the heavy-end of the produced gas stream. Volume growth for the central portion of Azure's gathering system, where many of the company's customers are actively drilling, has resulted in the need for additional gas gathering infrastructure in the area.
The Fairway plant will recover natural gas liquids from natural gas produced from the James Lime formation and return the dry residue natural gas through Azure's East Texas Gathering System. It will be delivered through interconnections with Gulf South's 42-inch pipeline, CenterPoint Energy Gas Transmission's 42-inch Line near Carthage, Gulf South's 30-inch pipeline at Milam, and Azure's interconnection with the facilities of Natural Gas Pipeline Company of America in Nacogdoches County, Texas. Natural gas liquids recovered by the Fairway plant will be trucked to fractionation facilities located in East Texas, South Louisiana, or Mont Belvieu, Texas, for separation into purity products.
"The start-up of the Fairway plant is another achievement in the already rapid success of Azure Midstream," stated I.J. "Chip" Berthelot, II, President of Azure Midstream. "Since the contemporaneous combination of TGGT Holdings, LLC and East Texas Gathering, we have made significant strides in executing on our commercial plan in our core asset base and look to build on this momentum over the coming months."
Company officials said Azure has an aggressive growth plan based on a combination of new development, bolt-on acquisition of gathering and processing businesses, and providing world-class midstream solutions for its customer's.