Oryx Midstream Services II LLC announced July 10 that its operating subsidiaries have launched a joint binding open season.

Now Oryx can secure volume commitments and/or acreage dedications to support the previously-announced regional crude oil gathering and trunk line transportation systems, which will serve the liquids-rich Delaware Basin in Texas and New Mexico. The binding open season commenced July 10 at 8 a.m. CDT and is scheduled to conclude at 5 p.m. CDT on August 9, 2018.

“We are pleased to launch this open season to support the construction of incremental transportation and gathering capacity in the rapidly expanding Delaware Basin” said Oryx Midstream Services CEO Brett Wiggs. “The new system extension and storage footprint allows us to provide crude oil segregation and connectivity for our customers in the Texas and New Mexico areas of the northern Delaware Basin to multiple takeaway options, providing the flexibility and market opportunities they need to maximize the value of their production.”

Based on customer demand, Oryx has expanded the scope of the original project to include additional capacity and a larger footprint across the Delaware Basin. The new system is expected to consist of approximately 400 miles of new gathering and transportation pipeline, with approximately 650,000 bbl/d of throughput capacity and more than 1.5 million bbl of storage capacity.

The new gathering and transportation system will span the Delaware Basin and is expected to provide services to Lea and Eddy counties in New Mexico and Loving, Reeves, Ward, Winkler and Culberson counties in Texas.

Construction on the new system has started and the regional transportation pipeline, which will connect Oryx’s Carlsbad station to the Crane and Midland market hubs, is expected to be fully commissioned during the fourth quarter of this year. The full system is expected to be complete in the second quarter of 2019.

Upon completion, and when combined with Oryx Midstream Services, LLC’s assets (operated by Oryx Southern Delaware Oil Gathering and Transport LLC), Oryx’s total Delaware Basin system capacity will exceed 850,000 bbl/d.