Frontier Midstream announces Permian Basin oil transportation system

Frontier Midstream Solutions, LLC has announced a new crude transportation system, to be owned by Alpha Crude Connector, LLC (ACC).

The ACC system will consist of over 400 miles of crude oil transportation pipeline, multiple truck racks, and over 300 000 bbls of storage in the northern Delaware Basin of Southeastern New Mexico and West Texas. The pipeline will initially have the capacity to deliver over 100 000 bpd of crude oil to multiple delivery points, accessing local refineries, rail outlets, and major downstream pipelines.

ACC will file for FERC authority to operate as a common carrier pipeline, with an open season commencing in June of 2014. Construction will commence following the open season, targeting initial flows in the second half of 2015.

ACC is a Joint Venture between Frontier and Concho Resources Inc. (Concho). In conjunction with the Joint Venture, Concho has agreed to enter into a long term transportation agreement with ACC. ACC will solicit interest from other producers and marketers for capacity on the new system.

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."

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/15052014/frontier_midstream_announces_permian_basin_oil_transportation_system/