A joint venture between private equity firms Crestwood Equity Partners and First Reserve, CPJV is focused on midstream infrastructure in the Delaware Basin.
The contribution from Crestwood of the Willow Lake assets to its JV is to grow and integrate its footprint in the Delaware Basin while creating a super system spanning across more than two million acres in the basin.
Through the acquisition, CPJV has become the owner of all the Delaware Basin assets that were previously held by Crestwood. There will be no change in the 50-50 ownership of CPJV by Crestwood and First Reserve.
Their joint venture will build a 200MMcf/d cryogenic gas processing plant dubbed as Orla Plant in Texas in the Reeves County. It will also build the related infrastructure including the Orla Express Pipeline needed to connect the Willow Lake system to the plant and various third-party pipelines.
The 33mile long and 20inch wide Orla Express Pipeline is part of the initial project scope for the CPJV expansion projects. It will be laid out between the existing Willow Lake gathering system in Eddy County, NM to the Orla Plant in Texas.
Developed at an initial investment of around $170m, the Orla Plant is expected to be commissioned in the second half of next year.
A joint statement from Crestwood and First Reserve read: “The Orla Plant is supported by current dedications from existing Willow Lake customers and is strategically located to attract processing volumes in Eddy County, NM as well as areas around the Orla Express Pipeline and the Nautilus system.”
After its commissioning, the Orla plant is to grow CPJV’s asset footprint to more than 200,000acres of dedication, 300 MMcf/d of gathering capacity, 285 MMcf/d of processing capacity and more than 360miles of pipeline.
