Tejon Treating's Major Expansion in the Midland Basin
Tejon Treating & Carbon Solutions (Tejon), a dynamic player in the midstream sector, has significantly enhanced its operations within the Midland Basin. This expansion includes the Mongoose Gas Plant and the surrounding gathering infrastructure, making it an attractive option for third-party gas operations.
Founded in 2023 with the support of Bayswater Management Company and its affiliates, Tejon specializes in gas gathering and treatment for sour gas. Initially, the Mongoose Gas Plant had just one customer, serving a dedication of 35,000 acres with a throughput capacity of 17 million cubic feet per day (mmcf/d). However, driven by growing demand, Tejon has broadened its reach considerably, achieving more than 137,000 dedicated acres and expanding its capacity to 70 mmcf/d.
Expanding Operations and Infrastructure
Tejon now operates over 90 miles of pipeline that service not only Bayswater but also an increasing network of regional producers. The company's strategic growth is a direct response to the urgent demand for reliable sour gas gathering and treating infrastructure in the Midland Basin region. Tejon's President, Mike Solomon, emphasized that their vision included building a flexible and high-performance system tailored to the growing needs of their customers.
Meeting Market Needs with Enhanced Capacity
The latest expansion has introduced multiple downstream delivery points, offering enhanced market options for gas processing, as well as NGL and residue gas takeaway. Tejon has also made significant strides toward sustainability by connecting to a new substation that allows for 100% electrification of the Mongoose Gas Plant and its associated compressor station. This transition not only improves the reliability of the system but also significantly reduces emissions.
Acknowledging Progress and Impact
Bayswater's President and CEO, Steve Struna, expressed pride in Tejon’s swift development since its inception, affirming its essential role in supporting the Midland Basin producers. The recent expansion underscores Tejon's commitment to providing safe, efficient, and environmentally friendly sour gas solutions, meeting the rising market demands.
About Tejon Treating
Tejon is dedicated to offering comprehensive solutions for sour gas gathering and treatment in the Midland Basin. The company has rapidly positioned itself in the market, aligning its operations with the growing needs of gas producers in this vital region.
The Role of Bayswater in Energy Investments
Bayswater, established in 2004, has strategically focused on upstream oil and gas investments, particularly in the DJ and Midland Basins. The firm has invested approximately $2 billion since its formation and continues to play a pivotal role in shaping the industry through strategic partnerships and investments.
Connecting with Industry Leaders
Tejon encourages collaboration with industry leaders to maximize its growth potential in the Midland Basin. Engaging with regional producers and stakeholders allows Tejon to better serve the community while advancing its infrastructure and services.
Frequently Asked Questions
What is Tejon Treating's primary service offering?
Tejon Treating specializes in sour gas gathering and treatment solutions in the Midland Basin, focusing on efficient and reliable infrastructure.
What expansion recently took place at Tejon's Mongoose Gas Plant?
The Mongoose Gas Plant underwent a significant expansion to increase its throughput capacity to 70 mmcf/d and added over 90 miles of pipeline.
How does Tejon Treating address environmental concerns?
Tejon has electrified its operations, reducing emissions significantly while enhancing system reliability, demonstrating its commitment to environmental responsibility.
Who are the main partners involved in Tejon Treating?
Tejon Treating was formed with backing from Bayswater Management Company and its affiliates, showcasing a strong partnership in the midstream sector.
What is Bayswater's investment focus?
Bayswater primarily targets institutional investments in upstream oil and gas, specifically in the DJ and Midland Basins, with a total investment of about $2 billion since its founding.
