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Crestwood completes initial build-out of Delaware Basin gathering system

Crestwood Equity Partners LP completed its initial build-out of its Nautilus gas gathering system in the Delaware Basin, placing it into service June 2.

The first phase was completed ahead of schedule, under budget and without any safety incidents, according to a June 6 news release. The build-out includes 20 receipt point meters, 60 miles of pipeline, a 24-mile high pressure header system, 10,800 horsepower of compression and a high pressure delivery point.

The Nautilus system would provide gas gathering services in an area of dedication of about 100,000 acres in Loving, Reeves and Ward counties of Texas. Upon completion of all construction phases, the system would have 194 miles of gathering lines, 36 miles of trunk lines and centralized compression facilities, expandable with increased production, for a total gathering capacity of about 250 MMcf/d.

The project is part of a long-term agreement with the Royal Dutch Shell plc subsidiary SWEPI LP to construct, own and operate a gas gathering system in Shell's Delaware Basin operating position.

Crestwood Permian Basin Holdings LLC, a Delaware Basin-focused midstream joint venture of Crestwood and First Reserve Corp., owns the Nautilus gathering system.