A Velocity Midstream Partners LLC unit has secured enough long-term customer commitments to support the construction of a second oil pipeline in Oklahoma's SCOOP play, to be connected to the Cushing hub and CVR Refining LP's Wynnewood refinery.
The Velocity Central Oklahoma Pipeline LLC project involves the construction of a 41-mile, eight-inch pipeline; associated gathering lines; and four terminal expansions capable of delivering as much as 100,000 barrels per day, according to a Jan. 31 news release. It would run parallel to Velocity's existing SCOOP system, which also has a 100,000-bbl/d capacity and is fully contracted.
The pipeline would connect to Velocity's 26-mile, 12-inch Wynnewood pipeline, due to begin service in April at an initial capacity of 45,000 bbl/d of oil, with a maximum capacity of 120,000 bbl/d. The resulting multipipeline corridor through the SCOOP play would provide access to over 400,000 proved gross acres of the Woodford formation and over 200,000 proved gross acres of the Springer formation, Velocity said.
Through the pipeline and four new truck injection terminals, producers would be able to segregate their heavier crude barrels from the Springer and Woodford oil formations from lighter barrels from the Woodford condensate formation, useful for sending to different markets and uses, while cutting trucking costs, Velocity said. The project would also support an anticipated increase in development activity in the SCOOP play, which has seen an increase in acreage acquisitions, permits and rig counts.
The project is expected to begin service in mid-2017.