Midstream Crude Oil Pipeline, a wholly owned subsidiary of Stakeholder Midstream, began a binding open season for the San Andres Crude Gathering System, a planned greenfield crude oil gathering and trunkline pipeline in the Permian Basin. The open season will conclude at 5 p.m. CST on Jan. 4.
The project will primarily serve wells producing from the San Andres formation in Yoakum County, TX, and Lea County, NM, and will provide transportation service to multiple takeaway pipelines near Denver City, TX. The process will allow shippers to make volume commitments and execute long-term transportation contracts.
“We are excited to be able to add new gathering infrastructure to the Northwest Shelf of the Permian Basin,” said Daniel Craig, Stakeholder vice president of Business Development. “We plan to kick off pipeline construction in January and expect to have our crude gathering system operational in May 2017.”