Tumbleweed’s Natural Gas Agreements to Expand Helium Output in Eastern Colorado
Tumbleweed Midstream LLC, which serves natural gas producers in Colorado and Kansas, has executed three long-term gathering and processing agreements that have quadrupled production at its Ladder Creek Helium Plant.
Two of the new agreements for the plant in eastern Colorado would more than double the inlet volume to 12 MMcf/d, while the third contract is expected to boost output in the next three months by another 3-5 MMcf/d.
“We have a first-class team that has worked hard with the area’s natural gas producers and with our helium tolling customers,” CEO Durrell Johnson said. “These results support our original position that the helium resource of this area is far from depleted.
“Helium is a highly valuable part of the natural gas stream in eastern Colorado and western Kansas,” providing “premium netbacks to the gas producers in the region. Despite the recent downturns in oil and natural gas pricing, helium demand remains strong and consistent.”