A subsidiary of Midland, Texas-based Oryx Midstream Services LLC is seeking support for a crude oil pipeline extension project in the Delaware basin. Oryx Southern Delaware Oil Gathering and Transport LLC has launched an additional binding open season to secure volume commitments and/or acreage dedications for the Oryx Trans Permian pipeline system (OTP). The extensive crude oil gathering and transportation system serves the liquids-rich southern Delaware Basin in Texas. The open season began May 18 and will end June 17.
The proposed extension is currently supported by two producers that operate approximately 50,000 acres in Reeves and Ward counties. It will consist of approximately 120 miles of new pipeline and will connect to the company’s existing OTP gathering, transportation and storage system. Construction will begin this month and the system is scheduled for completion early in the fourth quarter 2016. Upon completion of the extension, the OTP system will include more than 350 miles of oil pipeline, supported by more than 230,000 dedicated production acres.
“We are pleased to launch this extension of the OTP system, the third phase of gathering supply associated with our OTP project. This extension allows us to connect our customers in the western portion of our project area to multiple takeaway options, providing the flexibility and market opportunities they need to maximize the value of their production,” said Brett Wiggs, Oryx Midstream Services CEO. “Despite the current market conditions, we have seen significant need for gathering capacity and more efficient transportation logistics in our project area. The Delaware Basin has some of the most compelling economics of any rock in the lower 48 and we look forward to a continued build out of our midstream infrastructure to meet our customers’ needs.”
In addition to the low-pressure gathering and transportation assets, the OTP system includes approximately 112 miles of 16-in. transmission pipeline spanning portions of Reeves, Ward, Pecos, Crane, Upton and Midland counties, Texas. It provides access to two major interconnects, an active connection into Magellan’s Longhorn Pipeline near Crane, Texas, and a future connection into Enterprise’s Midland Terminal scheduled for completion in August 2016.
The OTP system also includes three storage terminals near the Texas towns of Pecos, Crane and Midland, with 150,000 barrels of leased or owned storage capacity currently in service. Oryx will expand the system’s storage capacity to more than 390,000 barrels with additional tankage in Reeves, Ward and Crane Counties.
The binding open season process provides potential shippers with the opportunity to make volume commitments or acreage dedications to the OTP system by executing long-term gathering and transportation contracts with Oryx. Shippers that elect to make long-term commitments to the OTP system during the open season will receive firm transportation service for their committed volumes.
Open Season documents can be found at Oryx’s website http://www.oryxmidstream.com/customer-center.Tags: Open Season, Oryx Midstream Services LLC, Oryx Trans Permian pipeline (OTP)