EagleClaw Midstream, a portfolio company of Blackstone Energy Partners and I Squared Capital, has made final investment decision to construct the Delaware Link pipeline project.
The new pipeline is intended to transport residue natural gas from the Delaware Basin to the Waha hub. It will also provide access to further downstream takeaway connections.
Supported by residue volumes from EagleClaw’s processing facilities as well as third-party customers, the approximately 64.3km Delaware Link will originate at EagleClaw’s three existing natural gas processing complexes in Reeves County, Texas.
The 30inch diameter pipeline project will have capacity to transport at least 1.2Bcf/d.
The company said that is also looking to increase the pipeline’s diameter and related transportation capacity, taking into the level of producer inquiry.
EagleClaw said in a statement: “Delaware Link is intended to provide E&Ps in the Delaware Basin further flow assurance and improved price realization by providing a direct, cost-advantaged path to Waha and multiple interconnections at Waha to various takeaway pipelines.”
The interconnections, amongst others, include direct access to the 2.1Bcf/d Permian Highway Pipeline which is designed to transport gas from Waha to the US Gulf Coast and other premium priced markets.
Additionally, EagleClaw has started commissioning its Pecos Bend IV cryogenic processing plant located at Pecos Bend site.
The Pecos Bend IV, the firm’s fourth cryogenic processing plant at its Pecos Bend site, is planned to be fully commissioned in May 2019.
EagleClaw operations vice-president Matt Wall said: “We are pleased by the progress with the construction of Pecos Bend IV since our acquisition of Caprock Midstream in late 2018.
“The interconnected nature of our newly-constructed processing sites and the increased scale of our operations is consistent with our mission of providing best-in-class service to Delaware Basin producers.”
The cryogenic processing plant, which was purchased in 2018 in conjunction with the acquisition of Caprock Midstream, will bring EagleClaw’s total interconnected processing capacity to 1.3 Bcf/d in the Delaware Basin.