Velocity Midstream plans second oil pipeline, additional crude oil terminals in SCOOP

Velocity Central Oklahoma Pipeline LLC, a wholly owned subsidiary of Velocity Midstream Partners LLC, has obtained long-term customer commitments supporting the construction of a second oil pipeline through the fairway of the South Central Oklahoma Oil Province (SCOOP), located south and southwest of Oklahoma City, providing connections to Cushing and the Wynnewood refinery owned by CVR Refining, LP (NYSE:CVRR).

Velocity has secured long-term anchor customers to support the new 41-mile 8"pipeline and four terminal expansions that will allow producers to deliver as much as 100,000 barrels per day of truck injected or pipeline gathered barrels. This new pipeline will directly connect to Velocity's previously announced 26-mile 12" Wynnewood Pipeline project set to be in service this April at an initial capacity of 45,000 barrels of oil per day and maximum capacity of 120,000 barrels of oil per day.

The new pipeline runs parallel to Velocity's existing SCOOP system which is fully contracted and has a current capacity of 100,000 barrels per day. The new pipeline and planned gathering lines, coupled with the four newly constructed dual-product truck injection terminals, will enable producers throughout the SCOOP to segregate their heavier crude barrels (produced from the Springer and Woodford oil formations) from their lighter barrels (produced from the Woodford condensate formation).

The company expects the new pipeline system to be in service mid-2017.

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