Frontier Midstream Solutions LLC has announced a new crude transportation system, to be owned by Alpha Crude Connector LLC (ACC).
The ACC system will consist of over 400 miles of crude oil transportation pipeline, multiple truck racks, and over 300,000 barrels of storage in the northern Delaware Basin of Southeastern New Mexico and West Texas. The pipeline will initially have the capacity to deliver over 100,000 barrels per day of crude oil to multiple delivery points, accessing local refineries, rail outlets, and major downstream pipelines.
ACC will file for Federal Energy Regulatory Commission (FERC) authority to operate as a common carrier pipeline, with an open season beginning June 2014. Construction will start following the open season, targeting initial flows in the second half of 2015.
ACC is a joint venture between Frontier and Concho Resources Inc. In conjunction with the joint venture, Concho has agreed to enter into a long-term transportation agreement with ACC. ACC will solicit interest from other producers and marketers for capacity on the new system.