US-based midstream company Rangeland Energy has acquired 770 acres near Loving in New Mexico, US, to develop a large terminal facility to handle crude oil, frac sand and pipe.
The company plans to invest about $150m in the new terminal and supporting infrastructure, and expects the terminal to begin service by the end of 2013.
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In addition, the company will build a pipeline system in southern Eddy County to improve connectivity with existing and planned pipelines to receipt and delivery of crude oil.
Rangeland will get support from EnCap Flatrock Midstream, while the terminal will receive, store and distribute crude oil to multiple downstream markets through pipeline and rail.
The company will receive crude oil from southeast New Mexico and west Texas through inbound trucks and gathering pipelines, while the terminal will store crude oil and provide outbound access to existing and planned pipelines.
Rangeland has acquired acreage to build facilities, to get frac sand by manifest or unit-trains, to store and stage the sand, as well as to load trucks for distribution to oil field service companies in the area.
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By GlobalDataThe terminal, which will also handle trans-modal rail business for other oil field materials, such as drill pipe, will be served by BNSF Railways.
Rangeland Energy president and CE, Chris Keene, said the new terminal will play a key role in the rapid production growth taking place in south-east New Mexico and west Texas.
"Our objective is to draw on our successful track record in North Dakota to provide a one-stop facility that can service drilling activity and market crude oil produced in New Mexico and west Texas," added Keene.
The company had a similar system in North Dakota, COLT, which was sold to Inergy Midstream in December 2012 for $425m.
Image: Rangeland Energy has acquired 770 acres to develop large terminal facility in New Mexico. Photo: Courtesy of Michael Kent.
