Crestwood Equity Partners announced Tuesday that it will construct, own, and operate a $180 million natural gas gathering system in Shell’s operated position in the Permian Basin as part of a deal with SWEPI, which is a subsidiary of Royal Dutch Shell.
Under the long-term gas gathering agreement, Crestwood will gather gas on 1,000 acres of land in West Texas with a system that is currently in development.
The system will include 194 miles of low-pressure gathering lines, 36 miles of high-pressure trunk lines, and centralized compression facilities. The initial system is designed for gas production of about 250 million cubic feet per day.
In its statement Crestwood said it expects the in-service date of the project to be on or before July 1, 2017.