New Concho-Frontier JV to Construct Midland Basin Gathering System
4/17/2019
(P&GJ) - Concho Resources and Frontier Midstream Solutions IV have agreed to form a 50-50 joint venture, Beta Crude Connector, LLC (BCC), to build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin.
The companies plan for BCC to build a 100-mile gathering system, 250,000 barrels of crude oil storage facilities, and truck terminals. The pipeline system is to have an initial capacity of 150,000 bpd of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines.
Frontier will serve as operator of BCC. Following an open season set for April 2019, construction will commence, targeting initial flows in mid-2019, the companies said.
BCC will file for FERC authority to operate as a common carrier pipeline and solicit interest from other producers and marketers for capacity on the new system. In conjunction with the joint venture agreement, Concho has agreed to enter into a long-term acreage dedication agreement with BCC.
“Through the joint venture, we will leverage Frontier’s midstream expertise and enhance the value of our high-quality footprint in the Midland Basin with a reliable, cost-efficient gathering and transportation solution," said Jack Harper, president of Concho. "Importantly, this is a compelling investment opportunity that we can make with no changes to our capital plans.”
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Pipeline Project Spotlight
Owner:
East African Crude Oil Pipeline Company
Project:
East African Crude Oil Pipeline (EACOP)
Type:
TotalEnergies in discussions with a Chinese company after Russian supplier Chelpipe was hit by sanctions.
Length:
902 miles (1,443 km)
Capacity:
200,000 b/d
Start:
2022
Completion:
2025
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