Open season begins for 164-mile Delta pipeline, terminal near Orla, Texas

Delta pipeline will provide shippers access to markets including El Paso, Midland, Cushing, Houston, Corpus Christi.

Houston-based Crestwood Equity Partners LP has announced a non-binding open season to seek shipper support for the Delta pipeline, a 164-mile crude oil and condensate pipeline header system originating at a new terminal to be built near Orla, TX (located in Reeves County).

The Delta pipeline is expected to be operational in the second quarter of 2017, according to a Crestwood press release.

“The Delta pipeline is designed to provide optimal netbacks for our gathering system producers, as well as other producers and marketers active in the surrounding areas,” said Heath Deneke, Crestwood’s COO and president of the Pipeline Services Division.

Heath Deneke, COO, Crestwood Equity Partners.

“Delta was designed specifically for producers seeking long term optionality to access multiple downstream pipelines and markets and also has the operational capability to batch specific grades of crude oil and condensate.”

The Delta pipeline will potentially have connections to multiple downstream interconnects that will provide shippers access to end markets including El Paso, Midland, Cushing, Houston, and Corpus Christi.

Delta will have the capability to batch multiple grades of crude and condensate, and initially transport over 200,000 barrels per day.

The project may be further expanded based on the results of the open season.

Crestwood says it is also negotiating with a large producer in the Delaware Permian Basin to anchor a large scale 3-stream gathering system spanning portions of Reeves, Loving, and Culberson counties that will aggregate crude and condensate volumes to Crestwood’s Orla Terminal.

“We are also pleased to announce the significant progress that we have made on the development of the large scale 3-stream gathering system that would bring significant crude and condensate supplies into the Orla Terminal,” said Deneke.

“We expect to conclude negotiations with our gathering system anchor producer in the near future.”

The 3-stream gathering system would consist of approximately 600 miles of pipelines and will span an area in excess of 400,000 acres. The Orla Terminal is planned to initially provide approximately 200,000 bbls of storage, truck loading and unloading facilities, blending services, multiple upstream and downstream pipeline connections, and will potentially provide condensate stabilization services for Wolfcamp production.