Crestwood Picks Up Shell’s Permian-Delaware Basin Assets
Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas) has entered into a long-term agreement with SWEPI LP, a subsidiary of Royal Dutch Shell plc (NYSE:RDS.A) (The Hague, Netherlands), to construct, own and operate a natural gas-gathering system in Shell’s operated position in the Permian - Delaware Basin. The company estimates the full build-out of the gas gathering system will be about $180 million. Activities are under way, with a targeted in-service date on or before July 1, 2017, according to a press release from Crestwood.
The system will be owned through Crestwood’s joint venture with First Reserve Incorporated (Houston, Texas), Crestwood’s indirect general partner and largest unitholder, which was formed to finance and own midstream infrastructure in the Delaware Basin, which is part of the Permian Basin.
Industrial Info is tracking two active Crestwood projects in the Permian Basin area: a $500 million crude oil and condensate terminal in Orla, Texas, and a $500 million, adjoining pipeline, which is a segment of the Delta Pipeline Project. The 180-mile, 20-inch-diameter pipeline runs from the Delaware Basin to Cushing, Houston and Corpus Christi. It will carry 200,000 barrels per day (BBL/d) of crude oil and 75,000 BBL/d of condensate, while the terminal will feature two crude oil tanks, each with a capacity of 40,000 BBL, and a 75,000-BBL/d condensate tank. For more information, see Industrial Info's project reports on the terminal and the pipeline.
First Reserve, for its part, also has a hand in renewable energy, with more than $2.6 billion worth of windfarms proposed or in development. Most are in the Texas Panhandle, including the $500 million first phase of the Mariah Windfarm in Bovina, Texas, which is the largest under construction. First Reserve and Brightman Energy (Austin, Texas), the lead developer, is expected to comprise 100 General Electric (NYSE:GE) wind turbine generators of 2.3 megawatts (MW) each, for a total output of about 230 MW. The facility is expected to eventually reach 1,200 MW of capacity. For more information, see Industrial Info’s project report.