Salt Creek Midstream and Noble Midstream Partners have agreed to form a joint venture to build a new 200 Mbpd crude oil pipeline and gathering system in the Delaware Basin in West Texas.
The 95-mile, 20-inch diameter pipeline system will originate in Pecos County, TX, with additional connections in Reeves and Winkler counties, TX, providing shippers with access to multiple downstream outlets. Salt Creek and Noble Midstream expect to execute definitive agreements and closing of the transaction by year-end.
Salt Creek said it has already commenced construction of the pipeline, with an expected operational date in the second quarter of 2019.
The project provides access to 200 Mbbls of new crude oil storage with expansion potential to 300 Mbbls. Its development is supported by an average customer acreage dedication term of approximately 15 years, Salt Creek said.
The project is underpinned by 180,000 dedicated acreage from the venture partners and five other Southern Delaware Basin producers, with available dedications of another 100,000 acres. It includes in-field crude gathering lines and a trunkline to Wink Hub that will provide downstream connectivity for producers in the Southern Delaware Basin.