Wolf Midstream Launches Binding Open Season for New Midland Basin Crude Oil Pipeline
DALLAS--(BUSINESS WIRE)--Nov 14, 2018--Wolf Midstream Partners, LLC (Wolf) today announced the launch of a binding open season to solicit long-term, firm shipper commitments for the proposed Red Wolf Crude Connector, a new crude oil pipeline to serve the Midland Basin. Through the open season, Wolf proposes to construct the approximately 40-mile, 16-inch pipeline, with an initial capacity of 120,000 barrels per day, originating in Howard County near Big Spring, Texas and connecting to Wolf’s existing crude oil terminal and downstream connections near Colorado City, Texas. The open season begins today, November 14, 2018 and ends Friday, December 14, 2018 at 4:00 p.m. CST.
The Red Wolf Crude Connector will provide a direct takeaway option for Howard County producers and shippers to be able to realize committed rates via acreage and/or shipping commitments, while providing more flexible access to numerous market opportunities. Construction of the Red Wolf Crude Connector is expected to result in significant cost savings for Midland Basin producers.
“We are excited about this project and what it means for our customers in the Big Spring area,” said Curtis Ewers, Wolf Chief Executive Officer. “Along with providing much-needed transportation capacity and increased market options, the Red Wolf Crude Connector provides Wolf with significant potential for additional growth and connection opportunities.”
Construction activities have begun and, pending the results of the open season, Wolf expects the Red Wolf Crude Connector to commence full commercial operations in the third quarter of 2019. The Red Wolf Crude Connector is an extension of Wolf’s existing crude oil pipeline and terminal, which was placed in service this year. The existing system is a network of approximately 50 miles of crude oil pipeline facilities that aggregate and transport crude oil production to the Colorado City Hub, providing access to multiple long-haul, large-volume pipelines for access to nearly all major downstream markets.
OPEN SEASON PROCESS
The open season begins today, November 14, 2018 and will conclude at 4:00 pm CST Friday, December 14, 2018. All bids and inquiries regarding the relinquishment of capacity must be submitted during the open season, except as provided in the open season notice. Bona fide prospective shippers may obtain copies of the Transportation Services Agreements, as well as the proposed Federal Energy Regulatory Commission and Texas Railroad Commission tariffs by contacting the representative listed below. Prospective shippers must execute a confidentiality agreement prior to delivery of these documents. More information concerning the open season can be found at http://www.wolfmid.com/about-us/customer-center or by contacting the Wolf representative listed below.
About Wolf Midstream Partners
Dallas-based Wolf Midstream Partners is a full-service midstream provider specializing in the gathering, treating, processing, compression and transportation of oil and natural gas. The company is currently focused in the Permian Basin region of West Texas. Wolf is financially partnered with Sinclair Oil and Cowboy Midstream. For more information, visit www.wolfmid.com.
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CONTACT: Open Season Inquiries
Wolf Midstream Partners, LLC
Phone: (508) 591-3292
15950 N Dallas Pkwy, Suite 400
Dallas, Texas 75248Media Inquiries
Phone: (210) 737-4478
KEYWORD: UNITED STATES NORTH AMERICA TEXAS
INDUSTRY KEYWORD: ENERGY OIL/GAS
SOURCE: Wolf Midstream Partners
Copyright Business Wire 2018.
PUB: 11/14/2018 09:00 AM/DISC: 11/14/2018 09:00 AM