MIDLAND, Texas--(BUSINESS WIRE)--Priority Power Management, LLC (“PPM”), a Texas-based leading independent energy management and consulting services firm, has entered into an agreement with Atlantic Midstream, LLC (“Atlantic”) to develop 3.6 MW of on-site natural gas-fired generation to power Atlantic’s new Gas Processing and Treating plant located in Reeves county, Texas.
PPM conducted a thorough engineering and economic evaluation of options to power Atlantic’s new facility located in a remote area just south of Pecos, Texas. The options evaluated included taking electrical service from the local electric utility, or installing on-site power generation operating in island mode. Multiple on-site power generation technologies and equipment configurations were also considered including natural gas-fired turbines and reciprocating engines. Based on PPM’s evaluation, Atlantic chose to install on-site power generation operating in island mode, and have PPM develop the project on its behalf.
Under the terms of the agreement, PPM will be responsible for the design, engineering, equipment procurement, construction, testing and commissioning of the power generation facility. PPM’s design includes building a small-package on-site power generation plant operating in island mode, and not connected to the grid. Power will be generated with three (3) paralleled Caterpillar G3516B natural gas-fueled generators, with two (2) operating and one (1) in standby mode. This design will accommodate an “n+1” redundancy of gensets for reliability, as well as planned or forced maintenance flexibility. The project will provide Atlantic with 3600 kW of ISO nameplate installed generation capacity. PPM has designed a paralleling switchgear line up to be installed to accommodate doubling the amount of generation capacity as Atlantic’s power demands grow.
“We are extremely pleased to be providing on-site power generation development services to Atlantic,” said John Bick, managing principal of PPM. “Electrical infrastructure continues to be a major challenge faced by many of our oil and gas clients driven by increased power demands from new production and midstream operations, particularly in remote locations. Our goal is to find the best overall solution to addressing these infrastructure challenges and meeting our client’s power requirements today and into the future.”
“We were faced with a significant cost to have the utility build an extension of their distribution facilities to serve the initial power requirements of our new plant, with additional costs expected in the future as our load grows,” said David Hiett, chief operating officer of Atlantic Midstream, LLC. “PPM helped us understand our options, and has provided us with a solution that will deliver reliable and cost effective power serving our needs for many years to come.”
The project is expected to be complete and operational in the first quarter of 2014.
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 Power Management 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 Power Management has grown to procure and managed approximately $1 billion of annual energy spend on behalf of clients from its offices in Midland/Odessa, Dallas/Fort Worth, Houston and Abilene.
About Atlantic Midstream, LLC
Headquartered in Tulsa, OK, Atlantic is an experienced and well-funded midstream company focused on the construction of new pipeline, gathering, compression and processing assets. Typically, these assets are designed and built in emerging basins or plays to meet the specific operational requirements of Atlantic’s producer customers. Atlantic seeks collaborative producer relationships and partnerships that provide Atlantic opportunities to implement its strategic capabilities such that both the producer-partner and Atlantic realize ongoing operational and economic benefits. Atlantic Midstream, LLC is a partnership that the Atlantic management team has formed with Natural Gas Partners (“NGP”) for the purpose of constructing and/or developing new pipeline, gathering and processing assets.