EagleClaw will proceed with construction of the Delaware Link pipeline.
EagleClaw announced that 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 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-mi., 30-in. 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 also is 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.