Velocity Midstream to Build Oklahoma Oil Pipeline

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Velocity Central Oklahoma Pipeline LLC, a wholly owned subsidiary of Velocity Midstream Partners, LLC, has obtained long-term customer commitments supporting the construction of a second oil pipeline through the fairway of the South Central Oklahoma Oil Province (SCOOP), providing connections to Cushing and the Wynnewood refinery owned by CVR Refining, LP.

Velocity Midstream has secured long-term anchor customers to support the new 41-mile 8″pipeline and four terminal expansions that will allow producers to deliver as much as 100,000 barrels per day of truck injected or pipeline gathered barrels to the most reliable and competitive markets. This new pipeline will directly connect to the company’s previously announced 26-mile 12″ Wynnewood Pipeline project set to be in service this April at an initial capacity of 45,000 barrels of oil per day and maximum capacity of 120,000 barrels of oil per day.

The new pipeline is expected to be in service mid-2017 and runs parallel to Velocity Midstream’s existing SCOOP system which is fully contracted and has a current capacity of 100,000 barrels per day. The new pipeline and planned gathering lines, coupled with the four newly constructed dual-product truck injection terminals, will enable producers throughout the SCOOP to segregate their heavier crude barrels produced from the Springer and Woodford oil formations from their lighter barrels produced from the Woodford condensate formation.

“This new pipeline project allows Velocity to leverage and broaden its existing footprint in Grady, Stephens, Garvin and McClain counties,” said Van Nguyen, Velocity Midstream’s COO. “Velocity will utilize its multi-line rights of way, construction crews, and operations teams already assembled to quickly and cost-effectively construct and operate the second pipeline and expanded terminal facilities. Additionally, Velocity will continue to build out gathering laterals and injection stations to better serve SCOOP producers.”

 

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