Capabilities
CORE SERVICES
Caiman Energy's core capabilities include gas gathering, compression, treating and conditioning, processing, transportation and fractionation. Value-added services include handling flowback and produced water, carbon dioxide sequestration, crude oil gathering and handling, lease and facility fuel gas supply and "back office" services including gas marketing for producers and gas supply for end users.
Our goal is to create value for our customers by providing the rapid and reliable delivery of gas produced at the wellhead to end-use markets. We are focused on building strong, collaborative relationships with producers to ensure that our customers have the necessary infrastructure and flow assurances in place at the right time in alignment with drilling schedules and critical business concerns.
Our roots are in natural gas gathering and processing where our senior management team has more than 120 years of experience. We are experts at gathering and processing gas in rapidly developing, unconventional resource plays.
More than 75 percent of the gas in the United States requires some form of processing or treating. As natural gas is produced at the wellhead, we gather and deliver it through pipelines to a central processing plant. There we separate natural gas liquids (NGLs) from the gas stream to meet long-haul pipeline specifications. These include ethane, propane, butane and other NGLs. Separated NGLs are transported by pipeline to our fractionation facilities for further separation. Caiman works closely with the nation's foremost marketers to provide our customers with dependable take-away service to wholesale and retail markets.
IN THE MARCELLUS
An enormous capital investment will be required in the Marcellus Shale for this area to realize its full potential. The liquids-rich acreage in the Marcellus is 3,000 to 5,000 square miles, roughly the same size of the Barnett Core. Adequate midstream infrastructure is needed to bring natural gas liquids to market and maximize producer netbacks.
By the end of 2014, Caiman Energy expects to have invested more than $1.3 billion for new infrastructure in the Marcellus. Our total dedicated acreage in the rich gas areas of the Marcellus is more than 160,000 acres. Including dedications in the lean gas areas of Pennsylvania and West Virginia, Caiman has close to 500,000 acres of Marcellus acreage dedicated to its midstream operations.
In May, 2012, we will have more than 150 miles of high-pressure, large-diameter pipeline in service in the Marcellus. In early 2011 we completed Fort Beeler Processing Plant I, a cryogenic processing facility located near Cameron, West Virginia. The plant has a capacity of 120 million cubic feet per day (MMcf/d). Drilling projections have prompted us to launch construction of a second cryogenic processing facility. Fort Beeler II is expected to be complete by March 1 of this year, bringing our natural gas processing capacity at Fort Beeler to 320 mmcf/d. We are building a third cryogenic facility at Fort Beeler and anticipate that we will have a total processing capacity of 520 mmcf/d online by August 1, 2012. An additional 400 MMcf/d in cryogenic processing capacity will come online in 2013 at our Ft. Wetzel site five miles to the west, bringing total processing capacity to 920 MMcf/d by October, 2013.
We expect to bring a de-ethanizer online at Ft. Beeler in 2013 to coincide with start-up of the Sunoco Sarnia Pipeline. Initial capacity wil be 30,000 barrels per day (bbls/d) with the ability to add another 20,000 bbls/d based on market demand.
A 25-mile NGL pipeline will connect the facilities at Fort Beeler to our new Moundsville I fractionation facility, which is under construction in Marshall County, alongside the Ohio River. With an initial capacity of 12,500 barrels per day (bbls/d), this facility will offer pipeline, rail, truck and river barge options to support the transportation of natural gasoline, purity propane and other products to valuable markets. This facility is expected to be online together with the Y-Grade NGL line, in April, 2012, with an additional 30,000 bbls/d coming online with a butane splitter in October of this year, bringing total fractionation capacity to 42,500 bbls/d. (See map).
As future markets develop we plan to expand our facilities to provide ethane for petrochemical facilities to be located locally or for existing plants in Sarnia or the Gulf Coast.
