Permian Basin pipeline demand prompts company to change plans

Trying to take advantage of the massive crude oil production in the Permian Basin, another West Texas pipeline and storage company is expanding a pipeline that’s already under construction.

Oryx Midstream Services II, based in Midland, Texas announced it will add 180 miles to the regional crude oil system that’s being built. When it’s finished, the system will total 400 miles of pipeline and 650,000 barrels of capacity along with 1.5 million barrels of crude oil storage.

The company anticipates the total pipeline will be online by the second quarter of 2019.

Oryx Midstream Services initially announced the construction of the system in September, which was originally to be 220 miles of pipeline with 400,000 barrels of capacity.

The expansion of the pipeline comes as crude oil pipelines leaving West Texas have filled up due to a lack of construction and continued production increases in the Permian.

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