West Texas Ghost Town Hosts Big Oil Pipelines, Natural Gas Projects

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Researched by Industrial Info Resources (Sugar Land, Texas)--For what has been called a ghost town in far West Texas, Orla is seeing a lot of Oil & Gas project activity. Industrial Info is tracking well over $3.7 billion in active projects in Orla, ranging from crude oil pipelines to natural gas processing plants.

Wikipedia describes Orla as a ghost town that was founded in 1890 in Reeves County, lying about 38 miles north of Pecos, with just two residents. Other accounts list a larger number of residents, but by any account, the place definitely has a paucity of permanent inhabitants.

However, Orla sits in the Permian Basin, and as such lies at the crossroads of oil and gas activity.

Click on the image at right for a graph showing projects in Orla by industry.

In January, Enterprise Products Partners LP (NYSE:EPD) (Houston, Texas) announced plans to add incremental capacity at its cryogenic natural gas processing facility under construction near Orla. Construction of the initial $250 million plant is expected to be completed next month. See Industrial Info's project reports on the 300 million-standard-cubic-foot-per-day natural gas processing plant and the initial $250 million expansion.

Construction is expected to kick off later this year on Phillips 66's (NYSE:PSX) (Houston, Texas) $700 million Gray Oak oil pipeline, which would transport up to 385,000 barrels per day (BBL/d) of Permian crude from Reeves, Loving, Winkler and Crane counties to Corpus Christi, Texas, for transport on to Freeport and Houston, also in Texas. The pipeline is expected to be placed in serve in the second half of 2019. For more information, see Industrial Info's project report. For related information, see February 5, 2018, article - Phillips 66 Benefits from Tax Reform, Progresses with Growth Projects.

Nearly $1.5 billion of the project activity in or near Orla involves Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas). Construction is expected to start shortly on Crestwood's $500 million grassroot crude and condensate terminal. The terminal will include two 40,000-barrel crude oil tanks and a 75,000-barrel condensate tank, along with buildings and truck unloading tracks to support the planned 200,000-BBL/d Delta Access Pipeline, which will move Delaware-Permian Basin crude oil from Orla to multiple outlets. See Industrial Info's project reports on the Orla terminal and the $500 million Delta Access Pipeline. Both projects are expected to be completed in 2019.

For related information, see November 1, 2017, article - Crestwood Partners Expands in Bakken, Permian with $1.86 Billion in Active Projects.

Orla also will be home to parts of EPIC Pipeline Company LLC's 730-mile crude oil pipeline, which will run from Orla to the Port of Corpus Christi, with terminals in in Orla, Pecos, Crane, Wink, Midland, Helena and Gardendale, and connectivity at the Port of Corpus Christi and export access. Industrial Info is tracking more than $1.5 billion in project activity tied to the pipeline, which is expected to be in service in 2019, according to the company. For more information on the main pipeline project, see Industrial Info's project report.

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