Located in the core of the Delaware-Permian
Crestwood has entered into a long-term agreement with SWEPI LP (“SWEPI”), a subsidiary of Royal Dutch Shell plc, to construct, own and operate a natural gas gathering system in Shell’s premier position in the Delaware-Permian Basin. SWEPI has dedicated to Crestwood approximately 100,000 acres and gathering rights for SWEPI gas production across Loving, Reeves and Ward counties, Texas.
The initial gathering system is designed for gas production of approximately 250 million cubic feet per day and will include 194 miles of low pressure gathering lines, 36 miles of high pressure trunklines, and centralized compression facilities which are expandable over time as production increases. Crestwood will provide gathering, dehydration, compression and liquids handling services on a fixed fee basis.
Project development is underway with a targeted in-service date by July 1, 2017.
The Delaware take-away crude pipeline system (“Delta”) is a proposed ~200 mile, 20-inch crude oil and condensate pipeline header system originating near Orla, TX (Reeves County) in the Delaware Basin. Based on shipper feedback from a non-binding open season, Delta will have potential connections to multiple downstream pipelines that provide shippers access to attractive demand markets, including Midland, Cushing, Houston and Corpus Christi. As designed, Delta will have the capacity to batch both crude and condensate, and initially transport over 200,000 barrels per day. A binding open season is anticipated during summer 2016, and Delta is expected to be operational in third quarter of 2018.
For more information, please contact
Vice President, Business Development
Mindy Hagerman Whitaker
Manager, Business Development
Senior Vice President, Western US Commercial