Two Companies Joining Forces to Build Crude Connector System in Midland Basin

Concho Resources Inc. and Frontier Midstream Solutions IV, LLC have announced to execute an agreement to create Beta Crude Connector, LLC (BCC), which will build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin, supporting continued oil production growth in the region.

The new gathering and transportation system will consist of an approximately 100 mile gathering system, 250,000 barrel per day of crude oil storage facilities as well as truck terminals.

The pipeline system will have the initial capacity to deliver 150,000 bpd of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines.

Construction will commence following an open season set for April 2019, targeting initial flows in mid-2019. Both companies own a 50% equity interest in BCC, with Frontier serving as operator.