Beta Crude Connector is targeting initial crude flows in mid-2019 – backed by Energy Spectrum Capital

Concho Resources Inc. (NYSE: CXO)  and Frontier Midstream Solutions IV, LLC will create Beta Crude Connector, LLC, an entity that will build and provide crude oil gathering, transportation in the Northern Midland Basin.

Concho and Frontier will each own a 50% equity interest in Beta Crude Connector, with Frontier serving as the operator.

Concho Permian Basin acreage - Midstream JV in the Midland for Crude Oil Transportation - Oil & Gas 360

The new infrastructure will consist of an approximately 100-mile gathering system, 250,000 barrels of crude oil storage facilities as well as truck terminals. The pipeline system will have the initial capacity to deliver 150,000 barrels per day of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines.

Following an open season set for April 2019, construction will commence, targeting initial flows in mid-2019.

BCC will file for FERC authority to operate as a common carrier pipeline and solicit interest from other producers and marketers for capacity on the new system.

In conjunction with the joint venture agreement, Concho has agreed to enter into a long-term acreage dedication agreement with BCC.

Concho President Jack Harper said, “This is a compelling investment opportunity that we can make with no changes to our capital plans.”

Concho Resources (NYSE: CXO) is one of the largest unconventional shale producers in the Permian Basin. Frontier Midstream Solutions IV, LLC, an entity of Frontier Energy Partners II, LLC and certain funds of Energy Spectrum Capital is a full-service midstream company with operations in several basins. Frontier’s private equity partner, Energy Spectrum has raised approximately $4.4 billion of equity capital across eight funds, the company said in a statement.

 


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