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Navigator Energy Services declares open season and pipeline system expansion

Published by
World Pipelines,


Navigator Energy Services, LLC (Navigator) announced that it is expanding the footprint, destination options, storage and throughput capacity of its Big Spring Gateway pipeline system (BSG System), serving the prolific Permian basin in West Texas. Upon completion of the expansion, the BSG system will include more than 650 miles of installed pipeline and a total system deliverability of approximately 600 000 bpd of crude oil.

The BSG System expansion will include:

  • Approximately 25 miles of laterals to connect to new Midland destinations: Centurion pipeline and Permian Express terminal (formerly SunVit).
  • A new destination point into Plains All American’s Basin pipeline at China Grove/Colorado City.
  • An increase in transportation capacity into Colorado City destinations to a total of at least 190 000 bpd of crude oil, with the capability of additional expansion.
  • Approximately 50 miles of new mainline into Midland and Upton counties.
  • A new truck offload station with four dedicated offload lanes near the Pegasus field in Midland County.
  • An increase in total overall system storage to approximately 1 million bbls.

Navigator has executed the necessary commercial contracts to proceed with the expansion and has commenced construction. The BSG system expansion is expected to be placed in service during the first half of 2017.

In support of the expansion, Navigator has launched a supplemental binding open season for additional transportation commitments to the BSG System. The binding open season commenced on 26 January 2017 at 8:00 a.m. CST.

Tariff updates and open season process

Under its FERC tariff, as amended, the BSG system will now offer delivery into three Colorado City destination points:

  • Sunoco Pipeline L.P.’s pipeline system, delivering into Permian Express 2 and West Texas Gulf.
  • BridgeTex pipeline.
  • Plains All American’s Basin pipeline at China Grove/Colorado City.

Via its TRRC tariffs, the BSG system has additional delivery capacity, including:

  • A new destination at Centurion pipeline’s South Curtis Ranch station.
  • A new destination at Permian Express terminal (formerly SunVit).
  • A capacity expansion into Alon’s Big Spring refinery.

Subject to the specific terms of the open season, tiered-volume committed rates and certain other service incentives will be available to committed shippers making long term volume commitments.

Read the article online at: https://www.worldpipelines.com/business-news/27012017/navigator-energy-services-declares-open-season-and-pipeline-system-expansion/


 

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US pipeline news Crude oil pipeline news