On Tuesday, Frontier Midstream Solutions, LLC announced plans for 400 miles of new pipeline for Southeastern New Mexico and West Texas.
The crude transportation pipeline system is to include multiple truck racks and over 300,000 barrels of potential storage in the northern Delaware Basin. In addition, the new pipeline is estimated to have the initial ability to deliver over 100,000 barrels of crude oil per day to numerous destinations.
The crude oil transportation pipeline is to be owned by Alpha Crude Connector, LLC (“ACC”) according to a press release from Frontier Midstream Solutions. The ACC plans on filing for Federal Energy Regulatory Commission (FERC) authority to operate as a common carrier pipeline. Construction is scheduled to commence in 2014-2015 with operation expected in the second half of 2015.
Dave Presley, President of Frontier, commented, “We are excited to be back in the Permian Basin and look forward to serving the producing community in the northern Delaware Basin. ACC will support growing midstream demand from increased drilling activity in the northern Delaware Basin and is designed to help producers reduce their logistics costs while maintaining the optionality to reach multiple markets.”
The ACC is the product of the combined efforts of Frontier Midstream Solutions and Concho Resources Inc.