Howard, WPX complete Delaware basin expansion projects

Howard Energy Partners and WPX Energy have completed construction on the majority of the 50-50 joint venture’s previously announced crude oil and natural gas gathering and processing infrastructure in the Permian’s Delaware basin.

Howard Energy Partners (HEP), San Antonio, and WPX Energy Inc., Tulsa, have completed construction on the majority of the 50-50 joint venture’s previously announced crude oil and natural gas gathering and processing infrastructure in the Permian’s Delaware basin (OGJ Online, June 16, 2017).

Following startup of the first 200-MMcfd plant in September 2018, HEP recently commissioned the second 200-MMcfd plant as part of its two-plant, 400-MMcfd cryogenic processing complex known as the County Line Facility (CLF) in Reeves County, Tex., HEP said.

CLF also includes 4,000 b/d of condensate stabilization capacity and provides connections to WhiteWater Midstream and El Paso Natural Gas transmission pipelines as well as the EPIC and Oneok West Texas NGL pipelines.

Alongside completing more than 50 miles of crude gathering pipelines totaling 100,000 b/d of capacity and an associated 50,000-b/d crude oil terminal in Reeves County, HEP said it also has entered into a new contractual commitment to support an unidentified but major Delaware basin producer that will further expand HEP’s crude oil gathering to accommodate dedication of more than 10,000 additional gross acres.

In addition to the completed processing complex and pipelines, HEP said it continues to work on building out its natural gas infrastructure with recent completion of a 23-mile, 24-in. trunkline connecting additional gas processing supplies in the area.

Construction also remains ongoing for about 21 miles of 16-in., high-pressure, rich-gas gathering pipelines that—due to be completed this summer—once fully built out, will bring overall throughput capacity of the system to about 800 MMcfd, the company said.

HEP said it maintains capability to expand infrastructure as customers continue to move towards full-scale development.

“The completion of our previously announced projects in the Delaware basin and our continued presence in the region is part of our broader company strategy to diversify both service offerings and geographic area,” said Mike Howard, HEP chairman and chief executive officer, adding that Delaware basin will remain a growth focus for the company amid ongoing demand growth for processing and pipeline infrastructure in the region.

Part of HEP’s initial phase of its broader strategic plan in the area, the Delaware basin assets form part of the strategic JV with WPX that, operated by HEP, are supported by an area of mutual interest of more than 600 sq miles in Lea and Eddy Counties, NM, as well as Reeves and Loving Counties, Tex.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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