Crestwood Equity, First Reserve announce joint venture on new West Texas pipeline

A joint venture between a Houston pipeline company and an investment banking firm will finance a $170 million pipeline project that will bring natural gas from New Mexico to Texas, the companies announced on Wednesday.

Crestwood Equity Partners, the pipeline operator, and First Reserve, an energy investment firm, will build a cryogenic gas processing plant in Orla, Texas, designed to cool and condense natural gas coming in from the New Mexico portion of the Delaware Basin.

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The plant will be able to process 200 million cubic feet of gas per day and will connect to a 33-mile pipeline running from Eddy County, New Mexico into Texas. The companies expect the gas processing plant to be in service in late 2018.

The plant will serve gas coming from fields operated by Marathon Oil Corp., Exxon Mobil Corp. and Concho Resources, among others.

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