Crestwood Equity Partners LP and First Reserve announced that Crestwood Permian Basin Holdings LLC, a joint venture focused on developing, owning and operating midstream infrastructure in the Delaware Basin, has agreed to acquire Crestwood’s Willow Lake gathering and processing assets located in Eddy County, NM. The companies also announced that the joint venture has approved the construction of a 200 MMcf/d cryogenic gas processing plant located near Orla, TX and associated pipeline infrastructure required to connect the Willow Lake system to the plant.
The initial project scope will include the Orla Express Pipeline, a 33-mile, 20-inch high pressure line connecting the existing Willow Lake gathering system in Eddy County, NM to the Orla plant. The Orla plant will provide full liquids handling and multiple residue and NGL interconnects. Initial project capital is projected to be $170 million with an in-service date in the second half of 2018.
Upon completion of the project, the joint venture’s integrated gathering and processing footprint will span more than 100 miles and service customers across Eddy and Lea counties, NM and Loving, Ward, Reeves and Culberson counties, TX.