Catalyst Midstream Partners, a joint venture between affiliates of Howard Energy Partners and WPX Energy, said its Stateline Crude unit has launched a binding open season for a crude oil gathering and related pipeline system to serve the Delaware Basin.
The new system is expected to include roughly 50 miles of crude oil gathering and transportation pipelines designed with the capacity to handle 125,000 barrels per day (BPD), Kallanish Energy reports.
It will span portions of Eddy County, N.M., and Reeves and Loving counties in Texas, delivering into a new terminal facility located in Loving County. The new terminal, nearing completion, will have an initial working storage capacity of 50,000 barrels.
Catalyst’s new crude oil gathering system is expected to be fully operational by the fourth quarter of 2018.
Catalyst is supported by long-term contracts with independent producer WPX, which is active in the Delaware. Those contractual commitments include an area of mutual interest of more than 600 square miles in Lea and Eddy counties in New Mexico, and Reeves and Loving counties, with 50,000 net acres currently dedicated by WPX.
The binding open season began Dec. 8, and is slated to conclude on Jan. 8.