Project Profile
Value: US$60 million (total cost of the first two phases)
Location: Delaware Basin near Pecos, Texas and terminate in Crane, Reeves County, Texas, USA
Capacity: 150,000 barrels a day of crude oil
Length: 75 miles
The Pecos River Pipeline System is a rich-gas gathering system located in Reeves County, Texas. The Pipeline will originate in the Delaware Basin near Pecos, Texas and terminate in Crane, Texas. At Crane, Texas, the Pipeline will connect to Magellan\'s Longhorn Pipeline, as well as Centurion Crude Oil Pipeline\'s Crane Station. Once fully operational, the Pipeline will have an initial capacity to transport 150,000 barrels a day of crude oil and will consist of more than 75 miles of trunk line. Lateral extensions, gathering stations, origination stations and truck offloading facilities It was acquired from Eagle Oil & Gas in December 2011. The system initially consisted of 60 miles of 4\" to 12\" poly pipeline and then expanded to 75 miles. Pecos River Pipeline is poised to support the development of over 60,000 gross acres of Bone Spring/Wolfcamp crude oil development. This development includes not only crude oil, but associated gas in excess of 7 GPM. As development occurs, Pecos River Pipeline will expand to meet producer needs in the area. Current drilling activity indicates an ability to significantly extend the system for the foreseeable future. The majority of existing wells are vertical completions spaced at 160 acres and are drilled to approximately 10,000\'. It is anticipated that vertical spacing will be reduced to 80 acres or less in the future. Additionally, horizontal tests are occurring in the area and if successful, will dramatically accelerate production rates for oil, gas and water. Current market outlets are Southern Union Gas and Regency Energy Partners.
• Connections to Centurion and Longhorn at Crane
Phase 1
• Highway 18 Station near Grandfalls to Highway 285 Station
• 29 mile extension
• In-service end of Q3 2014
Phase 2 / North Pecos Expansion
• Highway 285 Station to Loving, New Mexico
• 110 mile extension
• 15-18 months to construct
• Exploring Shipper Interest
Operators:
Advantage Pipeline: Operator with 70% interest
Blueknight Energy Partners LP (BKEP): 30% interest