Published: August 15, 2017 |

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Andeavor says that it is all set to launch the development of the Conan Crude Oil Gathering Pipeline system in the Delaware Basin with an investment of around $225m.

The Texas-based petroleum refining company has secured sufficient commitments from third party shippers to guarantee construction of the pipeline system.

According to Andeavor, the Conan crude oil gathering pipeline system will be of nearly 209kms. It will source crude oil from Lea County in New Mexico and Loving County in Texas and transport it to a terminal to be built in Loving County.

The Loving County terminal will comprise gathering system which will interconnect with long-haul pipeline carriers.

During the initial phase of the Conan Crude Oil Gathering Pipeline system, the capacity will be nearly 250,000 barrels per day. It is expected that further expansions of the pipeline system could boost the daily capacity to 500,000 barrels.

Andeavor says that it will allocate nearly $75m for the first phase of the gathering system in 2017.

The pipeline system is planned to enter commercial service in mid-2018.

Andeavor, which is an independent refiner and marketer of petroleum products, is the new name of Tesoro since August 1 following its acquisition of Western Refining for $4.1bn.

The merger of Tesoro and Western Refining to create Andeavor has resulted in the combined company to have ten refineries with a refining capacity of around 1.2 million BPD.

Andeavor employs over 13,000 employees with operations across 18 US states. It has over 3,000 retail sites and more than 46 million barrels of storage capacity.

In July, Andeavor had agreed for terminaling and transportation services in Mexico with with Petróleos Mexicanos.

Source: (August 14, 2017) Energy Business Review

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