A binding open season through Jan. 8 is testing support for a crude oil gathering and related pipeline system to serve the Permian Basin in the northern Delaware sub-basin.
Catalyst Midstream Partners LLC, a joint venture of Howard Energy Partners LLC (HEP) and WPX Energy Inc., said subsidiary Stateline Crude LLC launched the open season last Friday to garner support for a project that would run through Eddy County, NM, and the Texas counties of Reeves and Loving.
As designed, the new system would include about 50 miles of gathering and transportation pipelines with 125,000 b/d of capacity. A terminal nearing completion is to have an initial working storage capacity of 50,000 bbl. Construction of the crude gathering system has begun and is expected to be fully operational by late 2018.
WPX and HEP joined forces earlier this year to develop natural gas and crude oil infrastructure in the Stateline area of the Delaware to support drilling in the area. The joint venture represents 50,000 net acres, or 37%, of the Tulsa-based producer's 135,000 net-acre position in the sub-basin. Contractual commitments with WPX include an area of mutual interest of more than 600 square miles.
Meanwhile, Phillips 66 and Enbridge Inc. on Monday launched an open season for the Gray Oak Pipeline, which would transport West Texas crude to the Texas Gulf Coast. The partners did not indicate when the open season would end.
Origination stations in West Texas are being considered for Reeves, Loving, Winkler and Crane counties. Gray Oak is expected to have initial throughput capacity of 385,000 b/d, which could be expanded depending on shipper interest. The pipeline system could be in service by the second half of 2019.
For information about Gray Oak, contact Phillips 66’s Corey Leonard or Enbridge’s Jarrod Tessier.