Oryx Midstream Services II said Thursday its Oryx Delaware Oil Transport unit has launched a binding open season to support its regional crude oil transportation system serving the Delaware Basin in Texas/New Mexico, Kallanish Energy reports.
The open season seeks to gauge shipper interest on making commitments to one or both of the following proposed new movements:
* Originating from the Oryx Delaware Crane terminal near Crane, Texas, with a destination at Gray Oak Pipeline’s proposed Crane Station located near Crane
* Originating from the Oryx Delaware Midland terminal near Midland, Texas, with a destination at Plains All American’s Midland South Station located near Midland.
The proposed new origin and destination points will allow potential shippers from the Delaware Basin to access downstream markets within Texas and the Texas Gulf Coast.
“The ability to deliver crude oil to Gray Oak’s Crane Station and direct access to Plains’ Midland South Terminal significantly improves take-away optionality and provides added deliverability and increased flow assurance for our producer-customers and other potential shippers, to maximize the value of their crude oil,” said Brett Wiggs, CEO of Texas-based Oryx Midstream Services.
Subject to shipper demand, required new infrastructure to enable the proposed new movements, including the construction of new crude oil trunk lines and related terminal facilities and infrastructure, is expected to be completed in the third quarter of 2019.
The binding open season began Thursday and is slated to conclude on May 31.
This post appeared first on Kallanish Energy News.