Oryx launches binding open season for OTP pipeline system

One of Oryx Midstream Services LLC’s operating subsidiaries, Oryx Southern Delaware Oil Gathering and Transport LLC, has launched a binding open season to obtain volume commitments and/or acreage dedications to support the development of the Oryx Trans Permian (OTP) pipeline system, a new crude oil gathering and transportation system to serve the southern Delaware Basin in Texas.

The binding open season is scheduled to conclude at 5 p.m. CDT on Oct. 29.

The OTP system is currently supported by five anchor shippers that collectively will dedicate 220,000 operated acres with an area of mutual interest covering more than 1 million acres. Spanning portions of Reeves, Ward, Pecos, Crane, Upton, and Midland counties, the OTP system will have an initial capacity of 160,000 barrels per day (bp/d) with the capability to be expanded to up to 220,000 bp/d based on customer demand.

To support volumes for the current anchor shippers, the system is expected to include more than 300 miles of gathering pipeline, 100 miles of 16-in. transmission pipeline, and three storage terminals with 300,000 barrels of leased or owned working storage capacity. The terminals will be located near the Texas towns of Pecos, Crane, and Midland.

The OTP system will provide access to two major interconnects with delivery into Magellan’s Longhorn Pipeline and Enterprise’s Midland Terminal, providing shippers with multiple takeaway options that will reduce congestion in the region and create multiple market opportunities. The system also will have several strategically located truck unloading stations to facilitate the movement of trucked production in the area.

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