Salt Creek, Noble Midstream to build Delaware basin crude transport system

Oct. 3, 2018
Salt Creek Midstream LLC has entered into a letter of intent with Noble Midstream Partners LP to form a 50-50 partnership on a crude oil pipeline and gathering system in the southern Delaware basin.

Salt Creek Midstream LLC has entered into a letter of intent with Noble Midstream Partners LP to form a 50-50 partnership on a crude oil pipeline and gathering system in the southern Delaware basin. The project will be underpinned by dedicated contribution from about 180,000 acres by Noble Midstream, Salt Creek, and five other basin producers. Additional dedications totaling roughly 100,000 acres could also be added, including partial dedication of Noble’s 70,000-acre Reeves County, Tex.

The system will include nearly 100 miles of pipeline in Pecos, Reeves, Ward and Winkler Counties, Tex., in-field crude gathering lines, and a trunkline to Wink hub that will provide downstream connectivity for producers in the southern Delaware basin.

Salt Creek has begun building the system to meet an expected operational date of second-quarter 2019. The project provides access to 200,000 bbl of new crude oil storage with expansion potential to 300,000 bbl.

The average customer dedication term is about 15 years.