A new crude oil gathering system, the Greater Chickadee crude oil gathering project, will be constructed in the Permian Basin by a subsidiary of EnLink Midstream Partners LP (ENLK) and EnLink Midstream LLC, the company said June 8.
ENLK will invest between $70 million and $80 million to build Greater Chickadee, which will include more than 150 miles of high- and low-pressure pipelines carrying crude to major market outlets in Upton and Midland counties, Texas.
There are about 35,000 dedicated acres in Upton County for the project, which are currently producing more than 10,000 barrels per day of oil.
Multiple central tank batteries and pump, truck injection and storage stations will be constructed.
EnLink said that the initial phase of Greater Chickadee will be operational in the second half of 2016, and that full service will be expected early in 2017.
The project is supported by long-term, fee-based agreements with Permian producers.
EnLink Midstream Partners LP is based in Dallas.