EnLink Midstream Partners, LP (NYSE: ENLK) and EnLink Midstream, LLC (NYSE: ENLC) announced today that the partnership will construct a new crude oil gathering system in the Northern Delaware Basin called the Avenger Crude Oil Gathering System.
Avenger System; Source: EnLink
The project is built around a 10-year contract with Devon Energy Corp. with main dedications coming from Devon’s Todd (Eddy and Lea Counties, New Mexico) and Potato Basin (Eddy County, New Mexico) development areas.
“Our strong, long-term commercial relationship with Devon remains firmly in place, and today’s announcement demonstrates our joint commitment to ongoing success together in several regions, from North Texas to Central Oklahoma and now in the Delaware Basin,” said Michael J Garberding, EnLink president and CEO.
EnLink plans to invest approximately $35 million to $40 million of capital expenditures in the development of Avenger in 2018, with further expenditures to come as Devon continues to develop its assets in the region.
Initial operations are expected to begin during Q3 of 2018, and full-service operations are expected to commence during Q1 of 2019.
