EnLink Midstream is planning to build new crude oil gathering system in Upton and Midland counties in the Permian Basin.
Construction of the Greater Chickadee oil gathering system is estimated to cost approximately $70m to $80m.
The project involves construction of over 150 miles of high- and low-pressure pipelines to supply crude oil volumes to several major market outlets and other key hub centers in the Midland, Texas, area.
As part of the project, the company will also construct multiple central tank batteries and pump, truck injection, and storage stations in order to maximize shipping and delivery options for EnLink’s producer customers.
EnLink plans to commission the initial phase of Greater Chickadee project in the second half of this year. It is expected to be fully commissioned early next year.
EnLink Midstream president and CEO Barry Davis said: "We are doing exactly what we said we would do when we made the acquisition of LPC Crude Oil Marketing – using the LPC platform to expand and grow our crude service offerings in the Permian.
"Greater Chickadee is the next step in creating a regional gathering system to capture additional value through an expanded platform and improved asset integration."
The project is backed by long-term, fee-based agreements with Permian Basin producers.
The project includes approximately 35,000 dedicated acres in Upton County while the current production from the acreage is more than 10,000 barrels per day.