Rangeland Begins Construction Of Integrated Oil System

July 2014, Vol. 241, No. 7

Rangeland Energy has started construction of the Rangeland Integrated Oil System (RIO System) in the Delaware Basin region of Southeast New Mexico and West Texas. The multipart system is designed to transport the basin’s crude oil and condensate production to multiple downstream markets across the U.S. via outbound rail and pipeline. Construction of the rail facility is underway. It will provide services for outbound crude oil and condensate and inbound frac sand.

Known as the RIO Hub, the 300-acre rail terminal is located near Loving, NM in the center of the basin’s drilling and production activity. The RIO Hub will serve the Delaware Basin by providing storage, blending and rail loading facilities for outbound crude oil and condensate. Fee-for-service customers include crude oil marketers, refiners and producers. Truck-to-rail transload operations are expected to begin in October with an initial capacity of 10,000 bpd. As customer demand increases, Rangeland will build high-speed unit train loading facilities at the RIO Hub which will bring capacity to over 100,000 bpd.

Rangeland is also pursuing its RIO Pipeline project which will connect the RIO Hub at Loving, NM, to market centers in Midland, TX and beyond. The first 30-mile leg of the RIO Pipeline will connect the RIO Hub to the RIO State Line Terminal, a gathering hub at the Texas-New Mexico border where Rangeland will provide tankage and truck unloading facilities. An additional 104 miles of pipeline will connect the RIO State Line Terminal to the RIO Midland Terminal, which will provide connections to various terminals and interstate pipelines to Cushing and Gulf Coast markets.

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