Infrastructure / Gulf Coast / Shale Daily / Permian Basin / NGI All News Access

Phillips 66 Planning New Delaware Basin Crude Pipeline

Phillips 66 is holding an open season for capacity on the proposed Reeves-Odessa Origination (Rodeo) Project, which would provide crude oil takeaway capacity from the Delaware Basin, a subbasin of the Permian.

Rodeo would have origination stations in Reeves, Loving and Winkler counties in Texas, as well as at Odessa, TX. The pipeline would offer destination options at Wink, TX; the Phillips 66 Partners’ Odessa station; a new terminal to be built near Odessa as part of the Rodeo Project; and at Midland, TX.

The pipeline would likely have an initial throughput capacity of up to 130,000 b/d, with an ultimate potential throughput capacity of up to 450,000 b/d, depending upon shipper commitments.

The system could enter service in the second half of 2018. The open season offers shippers the ability to obtain committed shipper status through either an acreage dedication or a transportation and deficiency commitment. The open season begins March 24. The company did not provide an ending date and asked that prospective shippers sign confidentiality agreements before the open season begins.

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