Oryx Midstream Services II LLC announced it will construct a new regional crude oil transportation pipeline serving the Delaware Basin. Oryx II recently closed on a long-term regional oil transportation agreement with WPX Energy and other producers bringing total acres committed to Oryx II to approximately 300,000 dedicated acres. When combined with Oryx Midstream Services LLC (Oryx I), the total Oryx Delaware basin dedication footprint and system capacity will exceed 850,000 acres and 600 Mbpd, respectively.
Construction will start immediately on the new 220-mile regional transport line that will provide receipt points from the Carlsbad, Stateline, Pecos and Pyote areas, and deliver crude to Crane and Midland, TX. The system, comprised of 16, 20 and 24-inch lines, will have an initial capacity of up to 400 Mbpd 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.