The proposed new origin and destination points will allow potential shippers from the Delaware basin to access downstream markets within Texas and the Texas Gulf Coast. (Oryx Midstream Services photo)

Oryx Midstream Services II LLC announced that its operating subsidiary, Oryx Delaware Oil Transport LLC has launched a binding open season to secure volume commitments to support the proposed construction and development of new crude oil transportation movements on its regional crude oil transportation system serving the liquids-rich Delaware Basin in Texas and New Mexico. The binding open season commenced April 17, 2019 at 8 a.m. CDT and is scheduled to conclude at 5 p.m. CDT on May 31, 2019.

The open season seeks to gauge shipper interest on making commitments to one or both of the following proposed new movements:

• Originating from the ODOT Crane terminal near Crane, Texas, with a destination at Gray Oak Pipeline LLC's proposed Crane Station located near Crane, Texas; and
• Originating from the ODOT Midland terminal near Midland, Texas with a destination at Plains All American, L.P.'s Midland South Station located near Midland, Texas.

The proposed new origin and destination points will allow potential shippers from the Delaware basin to access downstream markets within Texas and the Texas Gulf Coast. Subject to shipper demand, required new infrastructure to enable the proposed new movements, including the construction of new crude oil trunk lines and related terminal facilities and infrastructure, are expected to be completed in the third quarter of 2019.

"We are pleased to launch this open season seeking support for additional movements on our regional transportation system. The ability to deliver crude oil to Gray Oak's Crane Station and direct access to Plains' Midland South Terminal significantly improves take-away optionality and provides added deliverability and increased flow assurance for our producer-customers and other potential shippers, to maximize the value of their crude oil," said Brett Wiggs, Oryx Midstream Services' chief executive officer. "Oryx's infrastructure reach and recently commissioned new regional transportation capacity and crude oil segregation assets give us the required capabilities to respond to the market's requirements for incremental capacity and transportation of discreet crude oil quality streams for refinery supply and/or export activities in the U.S. Gulf Coast."

Open Season Information

The binding open season process provides potential shippers with the opportunity to obtain firm capacity on the proposed new movements by making commitments to ODOT during the binding open season. Shippers that elect to execute a transportation services agreement and make commitments to ODOT during the binding open season will receive firm capacity rights up to an amount equal to each shipper's elected volume commitment.

A copy of the open season notice, which provides a high-level summary of the key terms set forth in ODOT's transportation services agreement, can be found on Oryx's public website at oryxmidstream.com/customer-center. A copy of the transportation services agreement, as well as a copy of ODOT's open season procedures, which provides a more detailed summary of the key terms in the transportation services agreement, will be available to interested shippers upon the execution of a confidentiality agreement with ODOT.

For more information, visit oryxmidstream.com.

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