Noble Midstream plans to form a 50/50 joint venture with Salt Creek Midstream for a crude oil pipeline and gathering system in the Delaware Basin.
The JV will be underpinned by acreage contributions from Noble and Salt Creek of 180,000 dedicated acres from Noble Energy and five other southern Delaware Basin producers, with a line of sight to additional dedications totalling 100,000 acres.
The 95-mile, 200,000 barrel of oil per day system will originate in Pecos County, Texas, with additional connections in Reeves County and Wink County, Texas.
It will be served by a combination of in-field crude gathering lines and a trunkline to Wink Hub.
Once the transaction is closed in the fourth quarter of 2018, the project would be underpinned by 180,000 dedicated acres and nearly 100 miles of pipeline in Pecos, Reeves, Ward and Winkler Counties. This includes an in-basin oil transportation dedication of the southern portion of Noble Energy's Reeves County position totalling 70,000 acres.
Salt Creek has started building the pipeline and is expected to be operational in the second quarter of 2019. The project provides access to 200,000 barrels of new crude oil storage, with expansion potential to 300,000 barrels.
Terry R. Gerhart, CEO of Noble Midstream, says: 'The pipeline system will provide critical downstream connectivity and enhanced market optionality for producers in the southern Delaware Basin.'
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