Rangeland Energy Announces Open Season for its RIO Pipeline
- The pipeline will connect crude oil production from the Delaware Basin to Midland, Texas, and takeaway pipelines to Cushing, Oklahoma; the Gulf Coast; and other market centers.
- The open season will begin at noon Central time on April 12, 2016, and will close at noon Central time on May 20, 2016.
SUGAR LAND, TX – Rangeland Energy (“Rangeland”) today announced the start of a binding open season for its RIO Pipeline. Operated by its affiliate Rangeland RIO Pipeline, LLC, the 109-mile, 12-inch, common carrier pipeline will transport crude oil and condensate produced in the Delaware Basin to terminals in the Midland, Texas, market center and takeaway pipelines to Cushing, Oklahoma; the Gulf Coast; and other market centers. The open season will begin at noon Central time on April 12, 2016, and will close at noon Central time on May 20, 2016. Currently under construction, the pipeline has a capacity of more than 125,000 barrels per day and is expected to become operational in July 2016.
The pipeline originates at Rangeland’s State Line Terminal in Loving County, Texas, where Rangeland has constructed truck unloading and crude storage facilities. Unloading facilities and tanks also have been constructed at the destination terminal in Midland, where additional space is available to build customer-leased crude storage. A long-term connection agreement has been executed with Plains Pipeline, L.P. for delivery to the Plains Midland South terminal, giving shippers access to multiple terminals at Midland as well as outbound pipelines.
The open season process provides shippers with the opportunity to make volume commitments and execute long-term transportation contracts with Rangeland. Shippers electing to make long-term volume commitments to the RIO Pipeline will be eligible to receive priority transportation service at a premium rate.
“We are pleased to be able to offer a new option to shippers moving Delaware Basin production to market,” said Rangeland Energy Vice President of Business Development Pat McGannon. “The Delaware Basin remains one of the most economic and prolific resource plays in the country, and we are dedicated to making sure that our customers have the infrastructure and the optionality they need to move production to market.”
The RIO Pipeline is part of the RIO System, a multi-asset system designed to support the production of crude oil and condensate in the Delaware Basin. Ultimately, the pipeline is expected to extend from the State Line Terminal to the RIO Hub. The RIO Hub is a 300-acre rail terminal located near Loving, New Mexico, in the heart of the Delaware Basin’s drilling and production activity. The terminal provides services for crude oil, condensate and frac sand, including unit train unloading, silo storage and truck loading facilities. To date, the RIO Hub has received and distributed approximately 1 million tons of frac sand to support drilling operations in the surrounding area.
About Rangeland Energy
Headquartered in Sugar Land, Texas, Rangeland Energy was formed in 2009 to focus on developing, acquiring, owning and operating midstream infrastructure for crude oil, natural gas, natural gas liquids and other petroleum products. The company is focused on emerging hydrocarbon production areas across North America, with an emphasis on West Texas, the Gulf Coast and Canada. The Rangeland team represents more than 200 years of combined midstream experience and is backed by an equity commitment from EnCap Flatrock Midstream. Visit www.rangelandenergy.com for more information.
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