Tumbleweed Midstream has acquired the Ladder Creek Helium Plant and Gathering System from DCP Midstream. The plant is located west of Cheyenne Wells, Colorado.
The Ladder Creek system is supported by long-term acreage dedications across a 1,000-square-mile area across Cheyenne, Kit Carson and Kiowa countries in Colorado and Hamilton, Greeley, Wichita, Kearney, Wallace and Finney countries in Kansas.
“The acquisition of the Ladder Creek Helium Plant and Gathering System represents a significant opportunity for Tumbleweed Midstream,” said Durrell Johnson, Tumbleweed CEO.
“The US is the world’s largest helium producer. At the same time, the world supply of helium is suffering from a multiyear shortfall. This has boosted prices for natural gas with a high helium content and has begun to raise red flags in industries that depend on helium.”
“The growth of Ladder Creek’s helium operations starts with delivering our current customers superior economics with the heist level of service. The helium is there, it’s highly valuable and by extracting it Tumbleweed can return premium netbacks to the producers in the region.”
The Ladder Creek Helium Plant and Gathering System serves natural gas producers operating in eastern Colorado and western Kansas. The natural gas produced in the region has a high helium content, with average concentrations as high as three percent.
Terms of the transaction were not disclosed.
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