Crestwood Midstream Partners LP will acquire a number of gathering and processing assets from Devon Energy Corp. in the liquids-rich southwestern area of the Barnett Shale for $90 million.
Crestwood and Devon have signed a 20-year fixed-fee gathering, processing and compression agreement under which Crestwood will gather and process Devon’s natural gas production from a 20,500-acre dedication. Current natural gas production under the agreement is 95 MMcf/d.
Assets being acquired include a 74-mile low-pressure natural gas gathering system, a 100 MMcf/d cryogenic processing facility and 23,100 horsepower of compression equipment in the western portion of Johnson County, TX. Devon’s West Johnson County pipeline system and processing plant are adjacent to Crestwood’s Cowtown gathering system which includes two gas processing plants with combined processing capacity of MMcf/d.