Quicksilver Gas Services LP (KGS) recently announced that it will gather and process greater volumes of natural gas in 2010, compared to 2009 levels, due to its recent acquisition of the Alliance midstream assets from its parent company, Quicksilver Resources Inc. (KWK).
Quicksilver Gas expects gas gathering volumes in 2010 to average 500 million cubic feet per day (MMcfd), while processing volumes are expected to average more than 170 MMcfd. This represents gathering volumes doubling and processing volumes rising more than 10% from expected 2009 levels.
The acquired Alliance assets consist of gathering systems and compression facilities with a total current capacity of 115 MMcfd and a plant with amine treating capacity of 180 MMcfd and dehydration treating capacity of 200 MMcfd to the gathered gas. The acquired assets complement the partnership’s existing operations in the Fort Worth Basin and provide opportunities for even stronger organic growth in the future.
Quicksilver Gas Services LP is a midstream master limited partnership engaged in the business of gathering and processing natural gas produced from the Barnett Shale formation in the Fort Worth Basin in north Texas. Headquartered in Fort Worth, the company’s predecessors began operations in 2004 to provide midstream services primarily to Quicksilver Resources Inc. Quicksilver Resources owns approximately 73% of Quicksilver Gas Services.
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