EnLink Midstream is planning to build a new crude oil gathering system in Upton and Midland counties in the Permian Basin, US.
The company will invest about $70m to $80m to build the new Greater Chickadee crude oil gathering project system, which will include more than 150 miles of high-pressure and low-pressure pipelines.
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The pipelines will carry crude oil to several market outlets and other key hub centres in the Midland area of Texas.
As part of the project, the company will also construct multiple central tank batteries and pump, truck injection, and storage stations to increase shipping and delivery options for its customers.
Greater Chickadee’s first phase is set to be operational in the second half of this year, while full service is expected early next year.
EnLink Midstream president and CEO Barry Davis said: "The Greater Chickadee project is a perfect example of EnLink’s commitment to execute in our core growth areas and will be a valuable complement to our crude oil business.
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By GlobalData"Greater Chickadee is the next step in creating a regional gathering system to capture additional value through an expanded platform and improved asset integration."
The project includes about 35,000 acres in Upton County, while the current production from the acreage is more than 10,000 barrels per day.
EnLink Midstream’s assets include about 9,900 miles of gathering and transportation pipelines, 19 processing plants with about 3.9 billion ft³ per day of processing capacity.
Other assets are seven fractionators with about 284,000 barrels per day of fractionation capacity, as well as barge and rail terminals and product storage facilities.
