Crestwood Equity Partners LP, which has operations in Kansas City, entered into an agreement to construct, own and operate a new natural gas gathering system in an area of the Permian-Delaware Basin in western Texas.
The agreement is with SWEPI LP, a subsidiary of Royal Dutch Shell, and provides Houston-based Crestwood with gathering rights for SWEPI gas production across about 100,000 acres in Loving, Reeves and Ward counties in Texas. The buildout of the new gas gathering system will cost about $180 million, and should result in a system collecting about 250 million cubic feet of natural gas per day. Shell has an option to purchase up to a 50 percent equity interest in the system before Sept. 1, 2017.
Crestwood Energy — which includes the assets of the former Kansas City-based Inergy LP — will work on the project as part of a larger partnership with First Reserve, a Houston-based private equity and infrastructure investment firm.
Read more: Kansas City Business Journal