Andeavor has announced that it has received sufficient commitments from third party shippers to warrant construction of the Conan Crude Oil Gathering Pipeline system in the Delaware Basin, US.
The pipeline system will be approximately 130 miles in length and transport crude oil from origins in Lea County, New Mexico and Loving County, Texas, to a terminal to be constructed in Loving County, Texas, where the gathering system interconnects with long-haul pipeline carriers.
The first phase of the pipeline system will have a capacity of approximately 250 000 bpd, with future phases of the system having the potential to increase capacity up to 500 000 bpd.
The system is under construction and is expected to begin commercial service in mid-2018. The estimated capital investment for the first phase of the gathering system is approximately US$225 million of which US$75 million is expected to be spent in 2017.