A significant pipeline project complete with terminals and storage tanks at each end has been announced by Delek Logistics Partners as it announced two new joint venture projects.
Delek Logistics Partners, a partnership formed by Delek US Holdings, will be a 33% participant in a pipeline project with Rangeland Energy on the Rangeland Integrated Oil Pipeline.
Delek US will become an anchor shipper of crude oil once the project is complete.
The project, which is expected to be complete in the first half of 2016, consists of a 12-inch, 107-mile pipeline starting in north Loving County, Texas and terminating in Midland, Texas.
It will have a capacity of 55,000 barrels per day, with the ability to expand to 85,000 barrels per day. The project also includes terminals at each end of the pipeline, injection points as well as storage tanks to support the pipeline.
Rangeland will build and operate the assets as part of the joint venture.
In a statement, Delek Logistics Partners said that the project will deliver crude to take-away pipelines located in the Midland area.
In addition to this project, Delek Logistics’ has also entered into a joint venture with a subsidiary of Plains All American Pipeline to construct a sweet crude oil pipeline from Texas to Louisiana.