Wolf Midstream Launches Binding Open Season for New Midland Basin Crude Oil Pipeline
Wolf
Midstream Partners, LLC (Wolf) today announced the launch of a
binding open season to solicit long-term, firm shipper commitments for
the proposed Red Wolf Crude Connector, a new crude oil pipeline to serve
the Midland Basin. Through the open season, Wolf proposes to construct
the approximately 40-mile, 16-inch pipeline, with an initial capacity of
120,000 barrels per day, originating in Howard County near Big Spring,
Texas and connecting to Wolf’s existing crude oil terminal and
downstream connections near Colorado City, Texas. The open season begins
today, November 14, 2018 and ends Friday, December 14, 2018 at 4:00 p.m.
CST.
The Red Wolf Crude Connector will provide a direct takeaway option for
Howard County producers and shippers to be able to realize committed
rates via acreage and/or shipping commitments, while providing more
flexible access to numerous market opportunities. Construction of the
Red Wolf Crude Connector is expected to result in significant cost
savings for Midland Basin producers.
“We are excited about this project and what it means for our customers
in the Big Spring area,” said Curtis Ewers, Wolf Chief Executive
Officer. “Along with providing much-needed transportation capacity and
increased market options, the Red Wolf Crude Connector provides Wolf
with significant potential for additional growth and connection
opportunities.”
Construction activities have begun and, pending the results of the open
season, Wolf expects the Red Wolf Crude Connector to commence full
commercial operations in the third quarter of 2019. The Red Wolf Crude
Connector is an extension of Wolf’s existing crude oil pipeline and
terminal, which was placed in service this year. The existing system is
a network of approximately 50 miles of crude oil pipeline facilities
that aggregate and transport crude oil production to the Colorado City
Hub, providing access to multiple long-haul, large-volume pipelines for
access to nearly all major downstream markets.
OPEN SEASON PROCESS
The open season begins today, November 14, 2018 and will conclude at
4:00 pm CST Friday, December 14, 2018. All bids and inquiries regarding
the relinquishment of capacity must be submitted during the open season,
except as provided in the open season notice. Bona fide prospective
shippers may obtain copies of the Transportation Services Agreements, as
well as the proposed Federal Energy Regulatory Commission and Texas
Railroad Commission tariffs by contacting the representative listed
below. Prospective shippers must execute a confidentiality agreement
prior to delivery of these documents. More information concerning the
open season can be found at http://www.wolfmid.com/about-us/customer-centeror
by contacting the Wolf representative listed below.
About Wolf Midstream Partners
Dallas-based Wolf Midstream Partners is a full-service midstream
provider specializing in the gathering, treating, processing,
compression and transportation of oil and natural gas. The company is
currently focused in the Permian Basin region of West Texas. Wolf is
financially partnered with Sinclair Oil and Cowboy Midstream. For more
information, visit www.wolfmid.com.
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Copyright Business Wire 2018
Source: Business Wire
(November 14, 2018 - 9:00 AM EST)
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