The latest effort to improve oil gathering and transportation service in the Permian Basin is a joint venture involving Tulsa’s Frontier Midstream Solutions IV, LLC.
The Oklahoma company reached an agreement with Concho Resources Inc. of Midland, Texas to create Beta Crude Connector LLC. Each will own a 50 percent equity interest in BCC with Frontier serving as the operator.
The newly-created company will build and provide crude oil gathering, transportation and storage services in the Northern Midland Basin.
The announcement indicated the new gathering and transportation system will consist of a nearly 100-mile gathering system, 250,000 barrels of crude oil storage facilities and truck terminals.
Beta Crude connector’s pipeline system will have the initial capacity to deliver 150,000 barrels a day of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines. The open season is this month and once it’s finished, construction will begin with the initial flows targeted for mid-2019.
BCC will file for FERC authority to operate as a common carrier pipeline and solicit interest from other producers and marketers for capacity on the new system. In conjunction with the joint venture agreement, Concho has agreed to enter into a long-term acreage dedication agreement with BCC.
Dave Presley, Frontier’s Chief Executive Officer said, “We are pleased that Beta Crude Connector will be the latest of our full-service midstream solutions and our second joint venture partnership with Concho as we demonstrate our commitment to quality partnerships and solutions for producers once again. ”