EnLink Midstream to establish new crude oil gathering system

A subsidiary of EnLink Midstream Partners, LP (the Partnership), and EnLink Midstream, LLC (the General Partner) will construct a new crude oil gathering system, called the Greater Chickadee crude oil gathering project, in Upton and Midland counties in the Permian Basin. The Partnership will invest approximately US$70 million to US$80 million to build Greater Chickadee, which will include over 150 miles of high and low pressure pipelines that will transport crude oil volumes to several major market outlets and other key hub centres in the Midland, Texas, area. The project also includes the construction of multiple central tank batteries and pump, truck injection, and storage stations to maximise shipping and delivery options for EnLink's producer customers. The initial phase of Greater Chickadee will be operational in the second half of this year with full service expected early next year.

"The Greater Chickadee project is a perfect example of EnLink's commitment to execute in our core growth areas and will be a valuable complement to our crude oil business," said Barry E. Davis, President and Chief Executive Officer of EnLink Midstream. "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."

Greater Chickadee is supported by long term, fee-based agreements with top Permian Basin producers. The project includes approximately 35 000 dedicated acres in Upton County. Current production from this dedicated acreage is over 10 000 bpd.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/project-news/09062016/enlink-midstream-to-establish-new-crude-oil-gathering-system-3487/