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Crestwood announces build-out completion of Nautilus gas gathering system

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World Pipelines,

Crestwood Equity Partners LP (Crestwood) has announced that the initial build-out of the Nautilus gas gathering system in the Delaware Basin is complete, and the system has been placed into service with first flow occurring on Friday 2 June 2017.

The initial build-out includes 20 receipt point meters, 60 miles of pipeline, a 24 mile high pressure header system, 10 800 hp of compression and a high pressure delivery point. This phase of the system has been successfully completed ahead of schedule, under budget and without any employee or contractor recordable safety incidents. The Nautilus gas gathering system is owned by Crestwood Permian Basin Holdings LLC, a Crestwood and First Reserve joint venture focused on developing, owning and operating midstream infrastructure in the Delaware Basin. First Reserve is a leading private equity investment firm exclusively focused on energy.

J. Heath Deneke, Chief Operating Officer and President, Pipeline Services Group, commented: “We are very pleased with the successful execution of the project by our project management team and key contractors to complete this project safely, ahead of schedule and under budget. The success of this project demonstrates our ability to capture and execute on accretive greenfield opportunities in and around our current asset footprint, and our commitment to best-in-class customer service, safe operations and environmental stewardship.”

In September 2016, Crestwood entered into a long term agreement with SWEPI LP (SWEPI), a subsidiary of Royal Dutch Shell plc, to construct, own and operate a natural gas gathering system in Shell’s operating position in the Delaware Basin. The Nautilus system is designed for gas gathering in an area of dedication of approximately 100 000 acres across Loving, Reeves and Ward counties, Texas. The system will ultimately include 194 miles of low pressure gathering lines, 36 miles of high pressure trunk lines and centralised compression facilities which are expandable over time as production increases, providing gas gathering capacity of no less than 250 million ft3/d.

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US pipeline news Natural gas pipeline news