The new gas processing plant has expanded the total processing capacity of Crestwood Equity Partners in the Powder River Basin to 345MMcf/d
Crestwood Equity Partners has started commercial operations at the Bucking Horse II processing plant in Converse County, Wyoming, which has a capacity of 200 million cubic feet per day (MMcf/d).
The new gas processing plant has expanded the total processing capacity of Crestwood Equity Partners in the Powder River Basin to 345MMcf/d.
In 2015, the company’s subsidiary Crestwood Midstream Partners alongside Williams Partners commissioned the Bucking Horse gas processing facility in the Niobrara Shale play in the Powder River Basin. The gas processing facility, which originally had 120MMcf/d capacity, was subsequently expanded to a capacity of 145MMcf/d.
Last year, the company’s subsidiary Crestwood Niobrara acquired Williams Partners’ 50% stake in their Powder River Basin joint venture for about $485m, thereby gaining 100% ownership in the Jackalope Gas Gathering System and the Bucking Horse Processing Plant.
The company said that following the completion of the Bucking Horse II processing plant, its capital requirements in the basin will come down significantly. This will be due to the investment of future capital towards multiple expansion and optimisation projects like line looping and compression across the midstream system, said the company.
Crestwood Equity Partners signs agreement with Occidental Petroleum
In a separate development, Crestwood Equity Partners has signed a new gathering and processing agreement to deliver wellhead services for Occidental Petroleum’s 2020 delineation programme in the Powder River Basin.
Crestwood Equity Partners said that the acreage involved in the agreement is located in the eastern part of the existing Jackalope Gas Gathering Services system. Based on the close proximity of the wells to the existing system, the company said that minimal incremental capital is required for connecting the new wells.
Crestwood Equity Partners president and CEO Robert Phillips said: “Today marks a key milestone for Crestwood as we bring the Bucking Horse II plant fully online and complete our three-year investment program to align our assets with our producers’ plans in our core growth basins.
“I want to congratulate all of the Crestwood employees that did a tremendous job to bring the plant into service safely and under-budget, and we are excited to welcome Occidental, a premier investment-grade operator, to our customer base in the basin.”