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Capacity Offered on New Crude Pipeline From Delaware Basin

Oryx Southern Delaware Oil Gathering and Transport LLC is holding a binding open season through Oct. 29 for the Oryx Trans Permian pipeline system (OTP), now under construction which will gather and transport crude oil from the southern Delaware Basin in Texas. It's an area where production has been growing and infrastructure expanding.

The Delaware is a sub-basin of the Permian, and Oryx Southern Delaware is a unit of Oryx Midstream Services LLC. The OTP system project is currently supported by five anchor shippers that will dedicate 220,000 operated acres with an area of mutual interest covering more than 1 million acres. Spanning portions of Reeves, Ward, Pecos, Crane, Upton and Midland counties, the system will have an initial capacity of 160,000 b/d with the capability to be expanded to up to 220,000 b/d based on demand.

"With multiple production zones providing years of drilling inventory, the southern Delaware Basin is expected to experience growing volumes and a significant need for additional takeaway capacity," said Oryx Midstream CEO Brett Wiggs.

To support volumes for the current anchor shippers, OTP is expected to include more than 300 miles of gathering pipeline, 100 miles of 16-inch diameter transmission pipeline and three storage terminals with 300,000 bbl of leased or owned working capacity. The terminals will be located near the Texas towns of Pecos, Crane and Midland.

The OTP system will provide access to two major interconnects with delivery into Magellan's Longhorn Pipeline and Enterprise Products Partners' Midland Terminal, providing shippers with multiple takeaway options. The system also will have several truck unloading stations to facilitate the movement of trucked production in the area.

Construction has begun on OTP and is to be completed in two phases. The first phase with service to Crane is expected to be operational by early first quarter 2016, and the second phase with service to Midland is expected to be operational by the second quarter of 2016. Oryx said it plans to design and construct the OTP system to accommodate all requests for service pursuant to the terms of the open season.

For information, contact Oryx Midstream CFO Karl Pfluger at (432) 253-7767, or karl@oryxmidstream.com.

Growing production from the Delaware has prompted other infrastructure projects as well.

Western Gas Partners LP's Delaware Basin Express LLC held an open season, ending Wednesday (Sept. 30) for a new natural gas pipeline that would serve portions of Reeves, Loving and Ward counties in Texas with capacity from the Delaware Basin to the Waha Hub (see Shale DailySept. 1).

Energy Transfer Partners LP affiliate ETP Crude LLC recently concluded a binding open season for the Delaware Basin Crude Gathering Pipeline, which would have capacity to accept 120,000 b/d of crude oil from receipt points in Reeves County and Lea County, NM (see Shale DailyJuly 31).

EnLink Midstream Partners LP recently acquired Delaware Basin gathering and processing assets from Matador Resources Co. in a $143 million deal (see Shale DailySept. 16).

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