Western Gas Partners to gather, process natural gas at Shell holdings in Texas

Western Gas Partners (WES) recently entered a new commercial agreement with Royal Dutch Shell (Shell) subsidiary SWEPI LP that will see the midstream specialist gather and process natural gas from Shell’s holdings in the Delaware Basin in Texas.

"I am very pleased to announce that we have entered into a new long-term relationship with Shell, a significant producer and acreage holder in the prolific Delaware Basin," WES CEO Donald Sinclair said. "This agreement enables us to provide midstream services to another top-quality producer in the region as we continue to expand our best-in-class gathering and processing footprint in West Texas."

Under the fixed-fee agreement, WES will gather and process natural gas, as well as undertake related services, for Shell at its holdings for a minimum of 20 years. In return, Shell will dedicate certain of its holdings, including wells and acreage, to WES’ assets for the period of the agreement.

WES is a limited partnership formed by Anadarko Petroleum Corp. that specializes in gathering, processing, treating and transporting natural gas and natural gas products like condensate and liquids. It has midstream assets in the Rocky Mountains, the Mid-Continent, north-central Pennsylvania and Texas.