A subsidiary of EnLink Midstream Partners LP and EnLink Midstream LLC plans to construct a crude oil gathering system in Upton and Midland counties, Tex., in the Permian basin.
The partnership will invest $70-80 million in the Greater Chickadee crude oil gathering project, which will include more than 150 miles of high- and low-pressure pipelines that will transport crude volumes to several major market outlets and other hub centers in the Midland area.
The project also includes the construction of multiple central tank batteries and pump, truck injection, and storage stations to expand shipping and delivery options for EnLink’s producer customers. The initial phase of Greater Chickadee will be operational in this year’s second half with full service expected early next year.
Greater Chickadee is supported by long-term, fee-based agreements with Permian producers. The project includes 35,000 dedicated acres in Upton County with current production averaging more than 10,000 b/d.
Formed in 2014 by the merger of the midstream assets belonging to Devon Energy Corp. and Crosstex Energy LP (OGJ Online, Mar. 7, 2014), EnLink Midstream has increased its presence in the Permian over the past couple of years with expansion projects (OGJ Online, Aug. 6, 2014), as well as the acquisitions of LPC Crude Oil Marketing LLC (OGJ Online, Jan. 13, 2015), and Coronado Midstream Holdings LLC (OGJ Online, Feb. 2, 2015).