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Binding open season for new Delaware Basin crude gathering system

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Hydrocarbon Engineering,

Catalyst Midstream Partners, LLC (Catalyst), a joint venture between affiliates of Howard Energy Partners LLC (HEP) and WPX Energy Inc. (WPX), announced that its wholly-owned subsidiary, Stateline Crude LLC (Stateline) has launched a binding open season for long-term contractual commitments to a new crude oil gathering and related pipeline system to serve the Delaware Basin.

Catalyst’s system is expected to include approximately 50 miles of crude oil gathering and transportation pipelines designed with the capacity to handle 125 000 bpd. It will span portions of Eddy County, New Mexico, and Reeves and Loving Counties, Texas, delivering into a new terminal facility located in Loving County. The new terminal will have an initial working storage capacity of 50 000 bbls. Construction of the gathering system has begun and is expected to be fully operational by 4Q18.

The company is supported by long-term contracts with WPX. Its contractual commitments include an area of mutual interest of more than 600 square miles in Lea and Eddy Counties and Reeves and Loving Counties, with 50 000 net acres currently dedicated by WPX.

The open season process provides potential shippers with the opportunity to make volume commitments or acreage dedications to the new crude oil system by executing long-term transportation contracts with Stateline. Shippers that elect to make long-term commitments to the project during the open season will receive firm transportation service for their committed volumes.

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