EagleClaw Midstream, a portfolio company of Blackstone Energy Partners and I Squared Capital, has announced that it has made a final investment decision (FID) to proceed with construction of the Delaware Link pipeline, a new pipeline designed to transport residue natural gas from the Delaware Basin to the Waha hub, with access to further downstream takeaway connections. 

Delaware Link is expected to be anchored by residue volumes from EagleClaw’s processing facilities as well as third-party customers. The approximately 40 mile, 30” diameter pipeline will originate at EagleClaw’s three existing natural gas processing complexes in Reeves County, Texas (East Toyah, Pecos, and Pecos Bend) 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.

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, amongst others, 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.

EagleClaw has also announced that it has begun commissioning of the company’s fourth cryogenic processing plant at its Pecos Bend site, Pecos Bend IV, 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.

Finally, in conjunction with the commercial announcements and the completion of the integration of Caprock Midstream and Pinnacle Midstream into EagleClaw, EagleClaw announced the retirement of Bob Milam as EagleClaw CEO and the promotion of Jamie Welch, previously EagleClaw President and CFO, to CEO. Bob Milam co-founded EagleClaw in 2012, and under his leadership the company has grown into a leading, diversified midstream provider strategically located in the core of the Delaware Basin. Bob will remain on EagleClaw’s Board of Directors, serving as Vice Chairman.

For more information visit www.eagleclawmidstream.com

8th April 2019