EnLink Midstream will construct a crude oil gathering system in the northern Delaware basin. Initial operations for the Avenger Crude Oil Gathering System are expected to begin in this year’s third quarter with full-service operations beginning during first-quarter 2019.
The project is anchored by a 10-year contract with Devon Energy Corp. and is supported by dedications from Devon’s Todd (Eddy and Lea counties, NM) and Potato basin (Eddy County, NM) development areas. Devon previously reported plans to direct a large portion of its capital budget into Delaware basin development.
The $35-40 million planned expenditures by EnLink for development of the system this year are incremental to the previously issued capital expenditures outlook for the partnership’s crude and condensate segment, the company said, and further expenditures are expected as Devon continues to develop its acreage in the region.
Avenger is the third crude oil gathering platform in a high-growth basin that EnLink has announced over the last 2 years, noted EnLink president and chief executive officer Michael Garberding (OGJ Online, June 8, 2016).
EnLink is not constructing or operating Avenger through its Delaware basin joint venture with NGP Natural Resources XI LP (OGJ Online, Aug. 4, 2016).
