Navigator Energy Services announced that it has begun initial service on its Big Spring Gateway Pipeline System, making deliveries into the Sunoco Logistics-owned West Texas Gulf Pipeline and the Permian Express 2 oil pipeline, with the current capability to transport up to 40,000 barrels of crude oil per day. The BSG System, serving customers in the prolific Permian Basin region, is expected to be in full service in December 2015 with a throughput capacity of up to 160,000 barrels of crude oil per day.
“This area of the North Midland Basin is characterized by high quality crude oil with stacked pay potential, resulting in very resilient production economics. We continue to see strong demand for crude oil transportation and storage solutions with multimarket access,” said Navigator Energy Services’ chief commercial officer, Matt Vining. “Navigator’s Big Spring Gateway project has evolved since its inception, and we are continuing to build out the pipeline system, adding additional market outlets to provide a flexible crude oil midstream solution that accesses the most advantageous markets.”
The approximately 450-mile BSG System spans portions of Martin, Howard, Glasscock, Midland and Mitchell counties in Texas, the heart of the Permian Basin region. Once completed, the system will have more than 250 miles of gathering pipeline, 200 miles of six- to 16-inch transportation mainline and 410,000 barrels of crude oil storage capacity. In addition to the Sunoco Logistics-owned pipelines, the BSG System will provide delivery into Alon’s Big Spring Refinery and the BridgeTex Pipeline, providing a direct path to Texas Gulf Coast and Mid-Continent market centers. The system will also include five truck stations, strategically located to accommodate trucked production in the area.