The EnLink Midstream companies, EnLink Midstream Partners LP and EnLink Midstream LLC announced that the partnership will construct a new crude oil gathering system in the Northern Delaware Basin called the Avenger Crude Oil Gathering System. Avenger is expected to significantly expand EnLink’s crude oil gathering operations in the area.
The project is anchored by a 10-year contract with Devon Energy Corp. and is supported by dedications from Devon’s Todd (Eddy and Lea counties, NM) and Potato Basin (Eddy County, NM) development areas. Devon previously announced plans to direct a significant portion of its capital budget into Delaware Basin development.
The partnership plans to invest approximately $35 million to $40 million of capital expenditures in the development of Avenger in 2018. These additional capital expenditures are incremental to the previously issued 2018 capital expenditures outlook for the partnership’s crude and condensate segment. Further capital expenditures are expected in future years as Devon continues to develop its acreage in the region. Initial operations are expected to commence during the third quarter of 2018, and full-service operations are expected to commence during the first quarter of 2019.