Crestwood Equity Partners LP and First Reserve, via a joint venture focused on developing, owning, and operating midstream infrastructure in the Delaware basin, has sanctioned construction of a 200-MMcfd cryogenic gas processing plant in Orla, Tex.
Initial project scope will include a 33-mile, 20-in. OD high-pressure line—the Orla Express Pipeline—connecting the existing Willow Lake gathering system in Eddy County, NM, to the Orla plant in Reeves County, Tex. The Orla plant will offer full liquids handling and multiple residue and NGL interconnects, serving customers across Eddy and Lea counties in New Mexico, and Loving, Ward, Reeves, and Culberson counties in Texas.
Crestwood anticipates several expansions once the plant is in service, including connecting it to the JV’s Nautilus gas gathering system and building additional laterals to gather incremental volumes for offset producers.
The company expects the Orla plant to enter service in second-half 2018 at a cost of $170 million.
Crestwood last year reached an agreement with Royal Dutch Shell PLC subsidiary SWEPI to gather natural gas across 100,000 acres in Loving, Reeves, and Ward counties. The initial gathering system being built to service the agreement can move about 250 MMcfd of gas and includes 194 miles of low-pressure gathering lines and 36 miles of high-pressure trunkline. Service is targeted to begin by July 1.