Priority Completes Consulting and Infrastructure Solution Project for Canyon Midstream
Multifaceted project culminates with energizing high voltage substation in Oklahoma’s STACK play.
MIDLAND and ARLINGTON, TX – May 7, 2018 – Priority Power Management, LLC (“PPM”), a Texas-based leading independent energy management and consulting services firm, has delivered an end-to-end electric energy solution to Canyon Midstream Partners II, LLC (“Canyon”), for a 200 MMcf/d cryogenic natural gas processing project in Woodward County, Oklahoma (the “Redcliff Plant”), providing natural gas processing services in the STACK play.
Important considerations in the early planning stages were the availability of sufficient electrical infrastructure capacity to serve the initial and future electrical loads of the Redcliff Plant, and the cost of receiving electric service – both from an upfront capital expense and ongoing operating expense perspective.
Priority worked closely with Canyon to evaluate potential sites for the Redcliff Plant, and developed financial economic models to analyze estimated future operating and upfront capital expenses depending on the local electric utility’s available electrical capacity and tariff rates. Several scenarios were evaluated including having the utility provide the required electrical infrastructure versus a private system owned and operated by Canyon. Given the aggressive project schedule to meet Canyon’s commercial obligations with its customers, the combination of upfront capital and ongoing operational costs per the applicable tariff, Canyon decided to move forward with a private system.
Canyon retained Priority to implement the solution, and to provide engineering, procurement and construction services to develop an electric high voltage substation and a 6.8-circuit mile primary distribution feeder, as well as interface with the electric utility to negotiate and manage the transmission interconnect.
“Priority’s knowledge and expertise in assessing the various combinations of electric infrastructure and tariff rate options proved to be invaluable in the early planning stages of the project,” said Michael Walsh, president and chief executive officer of Canyon Midstream Partners. “They developed a plan and implemented it with efficiency and high quality to deliver the project under an aggressive project schedule and under budget.”
“We are extremely grateful to Canyon for having been given the opportunity to provide our services for the Redcliff Plant,” said John J. Bick, managing principal of Priority. “It is especially gratifying to see all of the upfront work – analysis, planning, utility coordination, conceptual engineering designs, cost estimates – come together in a final product that meets our customer’s expectations.”
About Priority Power Management
Priority Power Management, LLC (www.PriorityPower.net) is a leading Texas-based independent energy management and consulting services firm to large commercial, industrial and government customers. Priority provides unbiased and objective energy management services in the areas of energy information, supply and risk management, demand-side management and energy infrastructure solutions. Since its establishment in 2001, Priority has grown to procure and manage approximately $1 billion of annual energy spend on behalf of clients from its offices in Midland/Odessa, Dallas/Fort Worth, Houston and Abilene.
About Canyon Midstream Partners II, LLC
CMP2 is a Houston-based company formed to acquire, develop and operate midstream energy companies and assets. The CMP2 team is led by Michael Walsh, President; Mark Fuqua, SVP Business Development; and Dale Harper, SVP Engineering & Operations. CMP2 is backed by $200 million in equity commitments from Kayne Anderson Energy Fund VII and the CMP2 management team. CMP2 seeks opportunities to create long-term value for its customers, investors and employees through operational improvements, organic and strategic growth and efficient capital investment. In addition to the Redcliff system, CMP2 is developing the Pomelo Connector pipeline in South Texas. For more information, visit www.canyonmidstream.com.
Priority Power Management, LLC
John J. Bick
T (972) 314-9040
Canyon Midstream Partners II, LLC
President and Chief Executive Officer
T (713) 655-9500