Construction is under way on Andeavor’s 130-mile Conan crude oil gathering pipeline system in the Permian’s Delaware basin.
The Conan system will transport crude from origins in Lea County, NM, and Loving County, Tex., to a terminal to be constructed in Loving County, Tex., where the gathering system interconnects with long-haul pipeline carriers.
The first phase of the Conan system will provide capacity of 250,000 b/d. Future phases of the system may expand capacity up to 500,000 b/d.
The system is expected to begin commercial service in mid-2018. Estimated capital investment for the first phase of the gathering system is $225 million, of which $75 million is expected to be spent in 2017.