Concho Resources Inc. and Frontier Midstream Solutions IV LLC have agreed to form Beta Crude Connector LLC (BCC) to build and provide crude oil gathering, transportation, and storage services in the northern Midland basin. Frontier will serve as operator. Each company will own equal equity interest. Following an open season set to launch this month, construction will begin, targeting initial flows in mid-2019.
The new system will consist of a 100-mile gathering system, 250,000 bbl of crude oil storage facilities, and truck terminals. The pipeline will have the initial capacity to deliver 150,000 b/d of crude oil to multiple delivery points, accessing local refineries and connecting to several downstream pipelines.
BCC will file for US Federal Energy Regulatory Commission authority to operate as a common carrier pipeline and solicit interest from other producers and marketers for capacity on the system. In conjunction with the joint venture agreement, Concho has agreed to enter into a long-term acreage dedication agreement with BCC.