First Reserve, Crestwood to build Orla Express Pipeline.


Crestwood Equity Partners LP and First Reserve announced Crestwood Permian Basin Holdings LLC, a joint venture focused on developing, owning and operating midstream infrastructure in the Delaware Basin, agreed to acquire Crestwood's Willow Lake gathering and processing assets in Eddy County, NM. The companies said the joint venture approved construction of a 200 MMcf/d cryogenic gas processing plant 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 to the Orla plant. The Orla plant will provide full liquids handling and multiple residue and NGL interconnects. Initial project capital is projected at $170 million with an in-service date in mid-2018.

Upon completion, the integrated gathering and processing footprint will span over 100 miles and service customers across Eddy and Lea counties, NM and Loving, Ward, Reeves and Culberson counties, TX.

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