Binding Open Season Announced by SCM Crude

The binding open season to solicit binding commitments for priority crude oil interstate gathering and transportation service was announced by SCM Crude, LLC. SCM Crude is a wholly-owned subsidiary of Salt Creek Midstream, LLC.

The binding open season was announced on its proposed Delaware Basin crude oil gathering and transportation system. The binding open season started on 2 August 2019 at 8:00 am CT, and will end on 31 August 2019 at 5:00 pm CT. Based on the results of the open season, the final volume of capacity of the project will be determined by SCM.

An opportunity will be provided by the open season for shippers to demonstrate support for the project by making acreage dedications for priority service, thereby becoming priority shippers for the term of their crude oil gathering agreements.

With interconnects to certain takeaway pipelines, including pipelines with direct, long-haul transportation to the Midland, Texas area and the Corpus Christi, Texas area, the crude oil gathering and transportation project will be constructed and operated by SCM, across multiple segments spanning from various tank battery receipt points in Eddy and Lea Counties, New Mexico, to SCM’s Wink Terminal and Orla Terminal.


Delaware Basin Gathering System Extension Announced by Brazos Midstream

Gathering and processing agreements have been executed between Brazos Midstream and ‘Shell Exploration & Production’ to construct a new natural gas gathering system located in the core of the Delaware Basin.

16 miles of high-pressure pipeline will be constructed by Brazos which will extend from the company’s existing gathering and processing systems. It can be expanded further to support multi-well pad development by current producer customers, as well as other producers in the area.

“We are very pleased to announce the expansion of our relationship with Shell Exploration and Production, one of world’s premier oil and gas companies, as well as the completion of our Comanche III processing plant,” said Brad Iles, Brazos Chief Executive Officer. “These projects are a testament to the strength of our operating team and demonstrate our commitment to aggressively expand our asset base in support of our upstream customers.”

Brazos’ Comanche III plant, a 200 million cubic feet per day cryogenic natural gas processing plant was recently commissioned and is the third plant in Brazos’ natural gas processing complex. The company is anticipating further expansion with a new 200 million cubic feet per day processing plant called Comanche IV and expects to begin construction as early as 2020.


Partial Service on Plain’s Cactus II Pipeline Expected to Start in Q3

Cactus II pipeline construction from the Permian Basin to Corpus Christi, Texas, is on schedule, said Plains All American Chief Executive Officer Willie Chiang during an earnings call late on Tuesday. Also the partial service to Ingleside is expected to be completed in the third quarter of 2019.

“We are at full speed ahead on progressing the project ... the pipe’s been ordered,” Chiang said, adding that discussions with additional potential shippers is ongoing.

He added that the full service on the Cactus II pipeline is expected by the first quarter of 2020. Another pipeline from the Delaware Basin, called the Wink-to-Webster project, is targeted to be placed into service in the first half of 2021, which is expected to have a capacity of more than 1 million barrels per day.


New Assessment of Wolfcamp Basin Reveals It as Most Potential Oil and Gas Resource Ever

The Permian Basin’s Wolfcamp and Bone Spring formations hold more than seven times the oil North Dakota’s Bakken shale holds, according to a U.S. Interior Department in an assessment made on Thursday. It makes Wolfcamp’s oil and gas resources the most potential oil to ever be assessed in history.

The new assessment shows that the Delaware Basin holds more than twice the oil as the largest previous assessment of the region. That study was completed two years ago.

The U.S. Geological Survey’s new assessment found that the Wolfcamp shale and overlying Bone Spring in the Permian holds an estimate 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids.

Interior Secretary and oil and gas advocate Ryan Zinke said the news is an early Christmas present for the energy sector.

"American strength flows from American energy, and as it turns out, we have a lot of American energy," Zinke said. "Before this assessment came down, I was bullish on oil and gas production in the United States. Now, I know for a fact that American energy dominance is within our grasp as a nation."

The study is based on undiscovered oil and gas that is considered recoverable due to modern extraction methods.

MSN Money

Oryx Midstream Completes Successful Open Season

Oryx Midstream Services announced the successful completion of their open season that would provide additional pipeline capacity for their new regional crude oil gathering and transportation system that will stretch across the Northern Delaware Basin.

The system will extend into Carlsbad, Eddy, Lynch and Lea County in New Mexico, near the state line share with Texas.

Oryx expects to complete the initial phases of the project in the second half of 2018, with the system expansion expected to be completed in the second quarter of 2019.

The expanded system will consist of more than 500 miles of new gathering and transportation pipeline with more than 1.5 million barrels of storage capacity. The eventual throughput capacity will reach about 700,000 bpd.

The expanded reach will help Oryx serve production from every active county in the Delaware Basin. Once the system is complete, Oryx’s total Delaware Basin transportation capacity will exceed 900,000 bpd.  

Pipeline & Gas Journal

Catalyst Midstream Partners Announces Open Season for New Crude Pipeline System in Delaware Basin

Catalyst Midstream Partners announced Friday it has launched a binding open season for shipper commitments to a new crude oil pipeline system that would serve the Delaware Basin.

The system would include 50 miles of crude oil gathering and transportation pipelines with a capacity of 125,000 barrels per day. The system would deliver to a terminal facility located in Loving County, Texas, which has a capacity of 50,000 barrels.

Construction has already begun on the pipeline and is expected to be fully operational by the fourth quarter of 2018.

Catalyst Midstream Partners is a joint venture between Howard Energy Partners and WPX Energy Inc.

Business Wire

Magellan Midstream Proposes New Permian-to-Gulf-Coast Pipeline for $1 Billion

Magellan Midstream Partners has announced plans to develop an estimated $1 billion pipeline system to carry crude and condensate from the Permian and Eagle Ford to the Gulf Coast.

The project would include constructing a new pipeline that would run approximately 375 miles from Crane, Texas to Three Rivers, Texas, where shippers could then opt to deliver crude to the Houston area via a new 200-mile pipeline or to Corpus Christi via a new 70-mile pipeline.

The pipeline system would have an initial capacity of at least 350,000 barrels per day and potentially expand to 600,000 barrels per day for each destination.

Magellan said it is considering additional extensions for Texas cities Midland and Orla, which would tie into its 60-mile Delaware Basin pipeline that is being built to carry crude from Wink, Texas to Crane, Texas.

The project is expected to be operational by the end of 2019.

Houston Chronicle

First Phase of Construction on EPIC NGL Pipeline Begins

Construction on the first phase of the 650-mile EPIC natural gas liquids pipeline has officially begun.

The project runs from southeast New Mexico to Corpus Christi and will be side-by-side through Texas with the previously announced 730-mile EPIC Crude Oil Pipeline for most of its route.

EPIC plans to have the first phase of the pipeline in service by early 2018 and the entire pipeline complete by early 2019. The pipeline will have a throughput capacity of at least 375,000 barrels per day with many origin points in the Delaware and Midland basins.

BP announced in September that it has signed on as the anchor shipper on the New Mexico-to-Texas EPIC NGL pipeline.

Houston Chronicle

Magellan Midstream to Build 60-Mile Crude Oil, Condensate Pipeline in Delaware Basin

Magellan Midstream Partners is beginning construction of a 60-mile Delaware Basin crude oil and condensate pipeline for approximately $150 million, the company announced Tuesday.

The pipeline will originate in Wink, Texas and terminate in Crane, Texas, which serves as an origin to the company's Longhorn pipeline. The Wink pipeline will begin with a capacity of 250,000 barrels per day and have the ability to expand to more than 600,000 barrels per day.

Magellan will also build a new terminal at Wink which will offer inbound and outbound pipeline access to parties that connect to the facility.

The company expected the pipeline to be operational in mid-2019. Plans to conduct an open season for commitments on the Wink pipeline system will be set at a later time.

PR Newswire

Andeavor Corp to Build $225 Million Crude Oil Pipeline in Delaware Basin

Andeavor Corp, formerly Tesoro Corp, plans to build a $225 million crude oil pipeline in the Delaware Basin.

In its first phase, the 130-mile Conan Crude Gathering Pipeline system will be able to transport 250,000 barrels per day. It will begin in Loving County and Lea County, New Mexico and connect with other pipelines in Loving County, according to a statement.

In its second phase, the pipeline could double to 500,000 barrels per day of capacity.

Western Refining, which Andeavor acquired for $4 billion in June, started an open season for the Conan pipeline system in May.

Andeavor expects the pipeline to begin commercial service in mid-2018.

LMT Online

Howard Energy Enters $563 Million Joint Venture for New Pipeline System in Permian Basin

Howard Midstream Energy Partners announced Tuesday it is entering a $563 million partnership with WPX Energy to build a 50-mile crude oil pipeline and processing system in the Permian Basin.

Once the company completes construction, the pipeline system will have the capacity to transport and process 400 million cubic feet of natural gas per day in the Permian's Delaware Basin.

Calling it the most prolific basin in the nation, Howard Energy CEO Mike Howard said in the release that the joint venture shows that the company can differentiate among its competitors and raise significant capital for large-scale infrastructure projects.

Howard Energy is based out of San Antonio, Texas and owns and operates pipeline and storage infrastructure in both Texas and Pennsylvania.

Houston Chronicle

Crestwood Announces Joint Venture on Texas Natural Gas Pipeline

Crestwood Equity Partners announced Wednesday it is partnering with an investment banking firm in a joint venture to finance a $170 million natural gas pipeline project traveling from New Mexico to Texas.

Crestwood and First Reserve will build a cryogenic gas processing plant in Orla, Texas that is designed to cool and condense natural gas from the Delaware Basin portion in New Mexico.

The plant will connect to a 33-mile pipeline that runs from Eddy County, New Mexico into Texas. The plant will be able to process 200 million cubic feet per day of gas and will also serve gas coming from fields operated by companies like Marathon Corp, Exxon Mobil Corp, and Concho Resources.

The companies estimate the gas processing plant to be in service in late 2018.

Fuel Fix

Phillips 66 to Build 130-Mile Rodeo Pipeline in Booming Permian Basin

Energy and logistics company Phillips 66 on Thursday announced its plan to build a crude oil pipeline in West Texas' Permian Basin in efforts to take advantage of the area's boom.

The Reeves-Odessa Origination Project, or Rodeo pipeline for short, would transport oil from the Delaware Basin portion of the Permian, running from Reeves County to terminals in the Odessa-Midland area.

The main line would be 130 miles long, not including various laterals constructed off the line. It would initially carry 130,000 barrels of crude per day and work up to 450,000 barrels per day.

Phillips 66 says the project is estimated for completion in the second half of next year. The company announced an open season to secure binding commitments from prospective shippers.

Phillips 66
Fuel Fix