Andeavor Corp. will push through with the construction of its planned Conan crude oil gathering pipeline system in the Delaware Basin with the support of enough third-party shipper commitments.
The 130-mile Conan system would carry crude form Lea County, N.M., and Loving County, Texas, to a new terminal in Loving County, which would connect to other pipeline carriers. The first phase would have a capacity of about 250,000 barrels per day, and future phases are expected to boost capacity up to 500,000 bbl/d, according to an Aug. 11 news release.
Andeavor allocated $225 million in estimated capital investment for the first phase of the system. The project is scheduled to begin commercial service in mid-2018.
Andeavor is the new name of Tesoro Corp., which took effect on Aug. 1.