MIDLAND, TEXAS – April 17, 2019 – Oryx Midstream Services II, LLC announced today that its operating subsidiary, Oryx Delaware Oil Transport LLC (“ODOT”) has launched a binding open season to secure volume commitments to support the proposed construction and development of new crude oil transportation movements on its regional crude oil transportation system serving the liquids-rich Delaware Basin in Texas and New Mexico. The binding open season commenced today, April 17, 2019 at 8 a.m. CDT and is scheduled to conclude at 5 p.m. CDT on May 31, 2019.
The open season seeks to gauge shipper interest on making commitments to one or both of the following proposed new movements:
- Originating from the ODOT Crane terminal near Crane, Texas with a destination at Gray Oak Pipeline, LLC’s (“Gray Oak”) proposed Crane Station located near Crane, Texas; and
- Originating from the ODOT Midland terminal near Midland, Texas with a destination at Plains All American, L.P.’s (“Plains”) Midland South Station located near Midland, Texas.
The proposed new origin and destination points will allow potential shippers from the Delaware basin to access downstream markets within Texas and the Texas Gulf Coast. Subject to shipper demand, required new infrastructure to enable the proposed new movements, including the construction of new crude oil trunk lines and related terminal facilities and infrastructure, are expected to be completed in the third quarter of 2019.
“We are pleased to launch this open season seeking support for additional movements on our regional transportation system. The ability to deliver crude oil to Gray Oak’s Crane Station and direct access to Plains’ Midland South Terminal significantly improves take-away optionality and provides added deliverability and increased flow assurance for our producer-customers and other potential shippers, to maximize the value of their crude oil,” said Brett Wiggs, Oryx Midstream Services’ chief executive officer. “Oryx’s infrastructure reach and recently commissioned new regional transportation capacity and crude oil segregation assets give us the required capabilities to respond to the market’s requirements for incremental capacity and transportation of discreet crude oil quality streams for refinery supply and/or export activities in the US Gulf Coast.”
Open Season Information
The binding open season process provides potential shippers with the opportunity to obtain firm capacity on the proposed new movements by making commitments to ODOT during the binding open season. Shippers that elect to execute a transportation services agreement and make commitments to ODOT during the binding open season will receive firm capacity rights up to an amount equal to each shipper’s elected volume commitment.
A copy of the open season notice, which provides a high-level summary of the key terms set forth in ODOT’s transportation services agreement, can be found on Oryx’s public website at http://www.oryxmidstream.com/customer-center. A copy of the transportation services agreement, as well as a copy of ODOT’s open season procedures, which provides a more detailed summary of the key terms in the transportation services agreement, will be available to interested shippers upon the execution of a confidentiality agreement with ODOT. A copy of the confidentiality agreement will be provided upon request. All binding commitments must be received by 5 p.m. CST on May 31, 2019.
About Oryx Midstream Services
Midland-based Oryx Midstream Services is focused on developing midstream infrastructure in the Permian Basin in New Mexico and Texas. Led by an experienced team with more than 160 years of experience in the oil and gas industry, Oryx is dedicated to providing producers with solutions and flexibility through a full suite of midstream services. For more information visit www.oryxmidstream.com.
Redbird Communications Group