Crestwood Midstream To Expand Willow Lake Project

Posted on

Crestwood Midstream Partners LP announced a further expansion of its Willow Lake Project located in the Permian Delaware Basin, which includes the conversion of a portion of its Las Animas natural gas gathering system into rich gas service and the construction of an initial cryogenic natural gas processing plant. The Willow Lake Project, located in Eddy County, NM, was originated in 2013 through the conversion of an existing Crestwood gathering pipeline and installation of natural gas liquids field separation equipment to support the drilling efforts of Legend Natural Gas III LP targeting the Second Bone Spring formation along with other producers in the region. Based on Legend’s successful 2013 drilling program, Crestwood and Legend have entered into a 10 year, fixed-fee gas gathering and processing agreement covering an area of mutual interest of more than 107,000 acres in the Willow Lake area. Additionally, Crestwood has purchased Legend’s existing gas gathering system which is being integrated into Crestwood’s existing footprint.
  Anchored by the Legend contract, phase 2 of Crestwood’s Willow Lake Project will include construction of a cryogenic natural gas processing facility (the Willow Lake Plant) with a capacity of 20 MMcf/d and additional gathering pipelines across the dedication area to support Legend’s 2014 and 2015 drilling program. Upon completion of the Willow Lake Plant, and based on area drilling activity and discussions with current operators, Crestwood is expected to further expand (phase 3) the Willow Lake gathering system and install a second gas processing plant (the Delaware Ranch Plant) with an expected capacity of 120 MMcf/d. The Delaware Ranch Plant is currently owned by Crestwood as a result of its 2012 acquisition of Devon’s West Johnson County gathering system and processing plant located in the Barnett Shale region.