A Tulsa pipeline company and a Wynnewood refinery operator are collaborating on an oil pipeline to serve operators in Oklahoma’s SCOOP play, according to a report by The Oklahoman.
Velocity Midstream Partners LLC and CVR Refining LP announced Monday that two of their subsidiaries will form a joint venture to build a pipeline and terminal linking the South Central Oklahoma Oil Province to Garvin County’s Wynnewood refinery.
CVR Refining will hold a 40 percent stake in the venture while Velocity Pipeline Partners LLC will contract with it for transportation services, according to the report. Velocity will manage and operate the joint venture after construction is completed.
Velocity previously built a 100,000-barrel-per-day pipeline through the SCOOP play for Continental Resources.
“The Woodford and Springer crude is attractive to Midcontinent refiners and, coupled with the reduction in crude transportation costs, provides the producers in SCOOP with very strong and reliable markets,” said Rick Wilkerson, President and CEO of Velocity.
“CVR Refining currently purchases significant volumes of SCOOP production by way of its wholly owned truck gathering fleet, and the addition of this new pipeline provides the opportunity to further enhance crude supply to our Wynnewood refinery,” said Jack Lipinski, CEO of CVR Refining.
