EagleClaw Midstream to Proceed with Delaware Link Pipeline

(P&GJ) - EagleClaw Midstream said Wednesday it has made a final investment decision to proceed with construction of the Delaware Link pipeline, a new pipeline designed to transport residue natural gas from the Delaware Basin in West Texas to the Waha hub.

Delaware Link Pipeline will originate at EagleClaw's three processing complexes, including East Toyah, pictured above (photo: EagleClaw))

The 40-mile, 30-inch Delaware Link will provide access to further downstream takeaway connections and is expected to be anchored by residue volumes from EagleClaw’s processing facilities as well as third-party customers, the company said.

The new pipeline will originate at EagleClaw’s East Toyah, Pecos, and Pecos Bend natural gas processing complexes in Reeves County and will have transportation capacity of at least 1.2 Bcf/d.

“Given the level of producer inquiry, EagleClaw is also evaluating increasing the pipeline’s diameter and related transportation capacity,” the company said.

EagleClaw also said Wednesday it has begun commissioning of the company’s fourth cryogenic processing plant at Pecos Bend, with full operational in-service planned for May 2019. The completion of Pecos Bend IV, which was acquired in conjunction with EagleClaw’s 2018 acquisition of Caprock Midstream, will take EagleClaw’s total interconnected processing capacity in the Delaware Basin to 1.3 Bcf/d.

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. These interconnections include direct access to the Permian Highway Pipeline, an approximately 2.1 Bcf/d pipeline designed to transport gas from Waha to the U.S. Gulf Coast and other premium priced markets.

Permian Highway, a joint venture between Kinder Morgan, EagleClaw, Apache and an affiliate of another anchor shipper, is currently under construction and is expected to be in service in the second half of 2020.

“We are pleased by the progress with the construction of Pecos Bend IV since our acquisition of Caprock Midstream in late 2018,” said Matt Wall, EagleClaw’s VP of Operations. “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.”

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