EVX Midstream Partners LLC has entered into a definitive agreement to build a crude oil gathering system in the Eagle Ford oil window.
The gathering system (EVX South Texas Crude) will be underpinned by a fee-based, 10-year agreement that includes a substantial acreage dedication and existing crude oil production in Frio, La Salle and McMullen Counties, Texas. EVX South Texas Crude facilities will serve many of the same producers as EVX South Texas Water.
In May, the company announced an agreement to build a produced water gathering system in the Eagle Ford oil window. The gathering system and surrounding facilities (EVX South Texas) will be underpinned by a fee-based, 15-year agreement that includes a 72,000-acre dedication in La Salle, Frio, and Atascosa Counties, Texas. Construction of the water gathering system is expected to be placed into service in the fourth quarter of 2016.
The company is currently evaluating multiple expansion opportunities in the area.