Published: July 27, 2018 |

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Crestwood Equity Partners’ Crestwood Permian Basin Holdings LLC completed construction and began processing volumes at the Orla plant, a new 200 MMcf/d cryogenic gas processing plant located in Reeves County, Texas.

Concurrently, CPJV brought into service the Orla Express Pipeline, a 33 mile, 20-inch-high pressure line connecting the existing Willow Lake system with the Orla plant. CPJV expects the Nautilus-to-Orla Pipeline, a 28 mile, 20 inch high pressure line connecting the Nautilus system to the Orla plant, to be fully in-service in the coming days. The Orla plant and associated infrastructure was placed into service on schedule, on budget, and without any major recordable safety incidents.

Crestwood Permian Basin Holdings LLC is a 50/50 joint venture between Crestwood and First Reserve, a leading global private equity investment firm exclusively focused on energy. CPJV’s Delaware Basin gathering and processing assets are supported by long-term contracts with premier customers and now include 255 MMcf/d of processing capacity, 650 MMcf/d of natural gas gathering capacity and 390 miles of integrated pipelines spanning the northern & southern Delaware Basin.

EPIC NGL PIPELINE TRANSACTION

CPJV entered into an agreement with EPIC Y-Grade Pipeline, LP to acquire undivided joint ownership in the Orla-to-Benedum segment of EPIC’s 16” NGL pipeline, which was placed into service June 2018. The ownership interest provides CPJV control of 80,000 Bbls/d of capacity out of the Delaware Basin to multiple downstream connections in the Benedum, Texas area with ultimate access to Sweeny, Mont Belvieu, and Corpus Christi markets. CPJV’s 80,000 Bbls/d of capacity, which is sufficient to move NGL product from the new 200 MMcf/d Orla plant plus two additional 250 MMcf/d processing train expansions, is being marketed on a standalone basis as a CPJV proprietary pipeline. CPJV’s ownership in this pipeline provides a competitive NGL takeaway solution to continue growing its G&P footprint in the Delaware Basin.

CHEVRON PHILLIPS Y-GRADE SALES AGREEMENT

Simultaneously, CPJV entered into a long-term purchase and sale agreement with Chevron Phillips Chemical Company LP in which CPJV will sell, and Chevron Phillips will purchase, Y-grade originating from CPJV’s Orla plant in Reeves County, Texas. Crestwood will deliver Y-grade product produced at the Orla plant via the Orla-to-Benedum segment to Chevron Phillips at the EZ Pipeline at Benedum Station, through which the product has the ability to reach multiple outlets to Mont Belvieu and be a key feedstock supplier to Chevron Phillips’s Sweeny Complex located along the Gulf Coast.

“Today marks a key moment for Crestwood’s Delaware Basin growth strategy as we have placed into service the first Orla plant, integrated the Willow Lake and Nautilus gathering systems, secured NGL pipeline takeaway capacity for the new Orla plant and future plant expansions, and signed a long-term, attractive marketing agreement for a substantial portion of Orla’s current and future NGL products,” said Heath Deneke, executive vice president and chief operating officer.

“Crestwood now operates a fully integrated gathering and processing system in the core of the Delaware Basin that is scaled to meet our producer’s current and future expected volume growth. Additionally, going forward, Crestwood is positioned to securely and economically move Orla NGL products into Gulf Coast markets which provides our customers optionality and flow assurance that creates a unique competitive advantage for Crestwood,” added Deneke.

About Crestwood Permian Basin Holdings LLC
Crestwood Permian Basin Holdings LLC is a 50/50 joint venture between Crestwood Equity Partners LP and First Reserve focused on developing, owning and operating midstream infrastructure in the Delaware Basin.

About Crestwood Equity Partners LP
Houston, Texas, based Crestwood Equity Partners LP is a master limited partnership that owns and operates midstream businesses in multiple unconventional shale resource plays across the United States. Crestwood is engaged in the gathering, processing, treating, compression, storage and transportation of natural gas; storage, transportation, terminalling, and marketing of NGLs; and gathering, storage, terminalling and marketing of crude oil.

To stop by Crestwood’s website, CLICK HERE

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