Wolf Midstream Partners has launched a binding open season seeking long-term, firm shipper commitments for the proposed Red Wolf Crude Connector, a new crude oil pipeline to serve producers in the Midland Basin.
Image: Pipeline system. Photo: courtesy of supakitmod/Freedigitalphotos.net.
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.
Wolf CEO Curtis Ewers said: “We are excited about this project and what it means for our customers in the Big Spring area.
“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.
Source: Company Press Release