Advantage Midstream, an independent midstream and gas-to-liquids focused company, has completed a long-term agreement with SandRidge Energy to deliver gas conversion services for acreage in the North Park basin, located in Jackson County, Colorado.

The agreement provides for the delivery of Advantage Midstream’s conversion system to process natural gas from SandRidge Energy’s North Park assets. The system will allow SandRidge to realize value for gas resources in the basin and provide other economic and environmental benefits to SandRidge. As part of the agreement, Advantage will own and operate the system and market all liquid fuels from the plant.

The M-Class (or “Movable”) systems convert full stream natural gas or natural gas liquids into an all-liquid gasoline blendstock and premium road ready diesel fuel using a compact, modular, movable system based on Greyrock’s proven Direct Fuel Production technology. (Earlier post.)

Greyrock’s catalyst eliminates the “wax refining” step associated with traditional Fischer-Tropsch processing. When wax is produced using traditional Fischer-Tropsch this wax needs to be refined into finished liquid fuels. This refining step requires large infrastructure with high capital and operating expenses.

The M-Class units are skid mounted, delivered by truck to the site and do not require poured foundations. Each unit has an automated control system and is remotely monitored.

Advantage Midstream is currently focused on opportunities in the Permian, Appalachia, Rockies, Bakken, Mid-Continent and other areas that have stranded or constrained natural gas production. The company offers a variety of services, including natural gas conversion, natural gas gathering, processing, treating and compression, and other oil and gas midstream services.