Oryx Midstream Services II LLC is gauging interest in additional crude transportation options in West Texas via a regional system that now serves the Permian Basin’s Delaware formation.
A binding open season through May 31 by subsidiary Oryx Delaware Oil Transport LLC (ODOT) is testing support for an expansion from the Crane terminal to the Gray Oak Pipeline LLC’s proposed Crane Station, and/or from the Midland terminal to the Plains All American LP Midland South Station.
Gray Oak, linking up to 1 million b/d from the Permian to markets near Houston as well as Corpus Christi, is scheduled to be in service later this year. Plains and partners ExxonMobil Corp. and Lotus Midstream LLC are advancing the 1 million b/d Wink to Webster Pipeline LLC, with origin points in West Texas at Wink and Midland, to multiple locations near Houston.
“The ability to deliver crude oil to Gray Oak’s Crane Station and direct access to Plains’ Midland South Terminal significantly improves takeaway optionality and provides added deliverability and increased flow assurance for our producer customers and other potential shippers, to maximize the value of their crude oil,” Oryx Midstream CEO Brett Wiggs said.
“Oryx’s infrastructure reach and recently commissioned new regional transportation capacity and crude oil segregation assets give us the required capabilities to respond to the market’s requirements for incremental capacity and transportation of discreet crude oil quality streams for refinery supply and/or export activities in the U.S. Gulf Coast.”
Subject to shipper demand, required new infrastructure to enable the proposed movements, including constructing oil trunklines and related terminal facilities and infrastructure are expected to be completed by the end of September.
In addition to the open season notice, information is available from Carlos Mata at email@example.com or (432) 253-0027.
Stonepeak Infrastructure Partners earlier this month agreed to pay $3.6 billion to purchase nearly all of the assets of Oryx Midstream Services, which is the largest privately held gathering and transportation oil operator in the Permian. Oryx has 2.1 million bbl of storage and around 1,200 miles of pipeline in service and under construction spanning eight counties in Texas and two in New Mexico. Once the remaining part of an Oryx system under construction is completed, total Delaware transportation capacity is slated to exceed 900,000 b/d.
Wiggs and CFO Karl Pfluger were to remain in their current roles and were investing alongside Stonepeak in the transaction.
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