Rangeland Energy has executed a long-term agreement with a subsidiary of Delek US Holdings, Inc. to be an anchor shipper of crude oil on the Rangeland Integrated Oil Pipeline (RIO Pipeline).
The pipeline will connect production from the Delaware Basin to the crude oil market center in Midland, TX. Delek Logistics Partners LP, Delek US’s logistics arm, will own 33% of the RIO Pipeline and supporting terminals.
Construction of the 107-mile pipeline is expected to begin shortly. Rangeland will also build a terminal at each end of the line. The pipeline will start at the RIO State Line Terminal which will serve as a crude oil gathering hub at the Texas-New Mexico border with storage tanks and truck unloading facilities.
The pipeline will terminate at the RIO Midland Terminal where there will be storage tanks and connections to terminals and interstate pipelines to Cushing and Gulf Coast markets.
Rangeland expects the pipeline and the two terminals to come into service in early 2016. RIO Pipeline will have an initial capacity of 55,000 bpd and an expanded capacity of 85,000 bpd or more, depending on the number of additional pump stations constructed.