Longhorn Midstream Holdings announced that one of its subsidiaries LM Touchdown Crude II has launched a binding open season to obtain commitments to support the development of its Touchdown Crude Oil Gathering System in the Northern Delaware Basin.
Image: Longhorn Midstream launches open season for the touchdown crude oil gathering system. Photo: Courtesy of David Mark from Pixabay.
The greenfield pipeline system will initially gather crude oil from origination points in Eddy County, New Mexico and deliver to destination points in Eddy County, New Mexico. The binding open season for the initial phase of the gathering system commenced today, July 15, 2019 at 8 a.m. Central time and is scheduled to conclude at 5 p.m. Central time on August 14, 2019.
The Touchdown Crude Oil System, which will support multiple customers willing to make long-term commitments, will initially consist of approximately 50 miles of gathering and transportation pipelines. Construction has begun and the gathering system is expected to enter partial service in September 2019 and to be fully commissioned in the first quarter of 2020.
In addition to the Touchdown Crude Oil System, Longhorn also announced it is constructing a gas gathering system in the Northern Delaware Basin. The Touchdown Gas Gathering System will initially provide low pressure gathering, dehydration, compression, and high-pressure gathering services for liquids-rich natural gas produced by customers in the area.
“The Northern Delaware Basin is one of the most economic areas in the country for oil and gas development,” said Elliot Gerson, Managing Partner at Longhorn. “The combination of prolific well results and insufficient existing infrastructure creates a compelling opportunity to offer our customers midstream solutions that will help unlock the underlying resource potential.”
Mike Davis, Managing Partner at Longhorn, added, “We are excited to develop our regional gathering systems, which will provide our customers with flow assurance and market optionality. The Touchdown Crude Oil and Gas Gathering Systems represent exactly the type of projects that the Longhorn team excels at developing and operating, and we look forward to continuing to expand our presence in the area by offering our customers a full suite of midstream solutions.”
Source: Company Press Release.