Oryx Midstream will build a new crude oil pipeline in Delaware Basin

A view from the Delaware Basin (image courtesy of Kirk Kittel on Flickr

A view from the Delaware Basin (image courtesy of Kirk Kittel on Flickr)

Oryx Midstream Services II announced today that it will build a new regional crude oil transportation pipeline serving the Delaware Basin with initial capacity of up to 400,000 barrels per day. Oryx II recently closed a long-term regional oil transportation agreement with WPX Energy and other producers bringing total area committed to Oryx II to approximately 1200 km2. When combined with Oryx I, the total Oryx Delaware basin dedication footprint and system capacity will be in excess of 3400 km2 and 600,000 barrels per day, respectively.
Construction will begin immediately on the new regional transport line that will provide receipt points from the Carlsbad, Stateline, Pecos and Pyote areas, and deliver crude to Crane and Midland, Texas. The system, comprised of 16-, 20- and 24-inch lines, will have an initial capacity of up to 400,000 barrels per day with the ability to expand based on shipper needs. It will serve production from every active county in the Delaware Basin including Lea and Eddy counties in New Mexico and Loving, Reeves, Ward, Pecos, Winkler and Culberson counties in Texas. The new crude oil pipeline will be constructed in phases and is expected to be in full service by the end of 2018.