Crestwood building out Delaware Permian midstream

Crestwood Equity Partners LP is holding a nonbinding open season for its Delaware Takeaway crude pipeline system (Delta), a 164-mile crude and condensate pipeline header system starting at a new Crestwood terminal to be built near Orla, Tex. in Reeves County, with potential downstream connections to multiple interconnects shipping to end markets including El Paso, Midland, Cushing, Houston, and Corpus Christi.

Delta will batch multiple grades of crude and condensate, initially transporting more than 200,000 b/d. The project may be expanded based on results of the open season. Crestwood expects Delta to enter service second-quarter 2017. The open season closes Dec. 7.

Crestwood is also in exclusive negotiations with a large producer in the Delaware Permian basin to anchor a large three-stream gathering system spanning portions of Reeves, Loving, and Culberson Counties, Tex., aggregating crude and condensate at the Orla terminal. The gathering system would consist of about 600 miles of pipeline and cover an area in excess of 400,000 acres.

Orla Terminal will initially provide roughly 200,000 bbl of storage, truck loading and unloading, blending, multiple upstream and downstream pipeline connections, and will potentially provide condensate stabilization services for Wolfcamp production.

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