Western Refining expands Delaware basin crude gathering

Western Refining Inc. has started its Mason Station crude oil terminal in Reeves County, Tex., the first phase of its Delaware Basin crude oil gathering system. Mason Station includes crude oil storage, truck offloading stations, and a pipeline interconnection to Kinder Morgan Energy Partner’s 450-mile crude oil pipeline supplying Western’s 128,000 b/d El Paso, Tex., refinery.

The second phase of the Delaware Basin system includes 50 miles of crude oil gathering lines in southern New Mexico and West Texas expected to be completed later this quarter. Phases 1 and 2 of the Delaware Basin system combined will deliver as much as 100,000 b/d of shale crude oil to the KMEP line for delivery to El Paso. The refinery currently processes about 25,000 b/d of the Delaware basin-sourced crude oil.

Western Refining is evaluating the feasibility of third and fourth phases for this project. Phase 3 would connect its Delaware Basin system to its existing 16-in. OD TexNew Mex pipeline in Chaves County, NM, providing additional supply flexibility to its El Paso and Gallup, NM, refineries. Phase 4 would expand Western Refining’s crude rail capacity at Gallup to 20 cars/day from 6 cars/day.

Contact Christopher E. Smith at chriss@ogjonline.com.

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