Crestwood to build $180M US natural gas gathering system

WCN Editorial Team 29 Sep 2016 NORTH AMERICA ENERGY & UTILITIES

Crestwood Equity Partners has signed a long-term agreement with SWEPI, a subsidiary of Royal Dutch Shell, to build, own and operate a natural gas gathering system in Shell’s operated position in the Permian-Delaware Basin.

The initial gathering system will support daily gas production of about 250M cb ft, and will include 312km of low pressure gathering lines, 58km of high pressure trunklines, and centralised compression facilities.

Crestwood will be responsible for gathering, dehydration, compression and liquids handling services on a fixed fee basis.

Crestwood general partner chairman, president and CEO Robert Phillips said: “We are pleased to enter into this important, long-term gathering agreement with SWEPI in the prolific Permian Basin where Shell has been developing its premier Delaware Basin acreage position since 2012.

“This agreement demonstrates Crestwood’s strong operating track record in the Marcellus, Bakken, Barnett and Delaware basins and our leading commitment to customer service, safe and reliable operations and environmental stewardship.”

SWEPI will offer Crestwood with about 100,000 acres and gathering rights for SWEPI gas production across a large acreage position in Loving, Reeves and Ward counties, Texas.

The $180M system is expected to be operational on or before 1 July 2017.

* Data provided by Timetric's Construction Intelligence Center.

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