Andeavor has received sufficient commitments from third-party shippers to proceed with construction of the Conan Crude Oil Gathering Pipeline system in the Delaware Basin.
The Conan Crude Oil Gathering Pipeline system will be approximately 130 miles in length and transport crude oil from origins in Lea County, New Mexico and Loving County, Texas to a terminal to be constructed in Loving County, Texas, where the gathering system interconnects with long-haul pipeline carriers. The first phase of the Conan Crude Oil Gathering Pipeline system will provide capacity of approximately 250,000 barrels per day. Future phases of the system may expand capacity up to 500,000 barrels per day.
The system is currently under construction and is expected to start commercial service in mid-2018. The estimated capital investment for the first phase of the gathering system is approximately $225 million, of which $75 million is expected to be spent in 2017.