Navigator Energy Services Successfully Closes Supplemental Open Season for Big Spring Gateway Pipeline & Announces New Delive...
27 April 2015 - 10:30PM
Business Wire
Navigator Energy Services, LLC (“Navigator”) today announced the
successful closing of the supplemental binding open season period
for volume commitments on its Big Spring Gateway Pipeline System
(“BSG System”). Based on binding capacity bids received from
prospective shippers, Navigator has executed long-term
transportation service agreements and is pursuing expansion of the
BSG System by 65,000 barrels of crude oil per day (bbl/d) to a
total capacity of 140,000 bbl/d. Navigator has commenced
construction, and the first portion of the BSG System is expected
to be placed into service early in third quarter of 2015.
Additionally, Navigator has solidified a new delivery point on
the BSG System to Alon USA Partners, LP (NYSE: ALDW) (Alon’s) Big
Spring Refinery. Navigator will have the capability to deliver up
to 100,000 bbl/d of crude oil to the refinery and is the only
gathering system of its kind and scope to connect into the
facility. The Big Spring Refinery, located in Big Spring, Texas,
has an aggregate crude oil throughput capacity of approximately
73,000 bbl/d and processes 100 percent Permian Basin crudes.
“Despite the recent downturn in commodity prices, the continued
demand for low cost crude transportation solutions with multimarket
access is what drove this offering. The customer response and
ultimate completion of the BSG expansion project materially expands
the BSG System’s ability to serve the continued volume growth of
the North Midland Basin,” said Navigator chief commercial officer,
Matt Vining. “We are thrilled with the Alon relationship as it
gives our customers direct access to a strong local market and
further complements the suite of market options now available on
the BSG System. The BSG System will have over 350,000 bbl/d of
deliverability into four different markets via interconnects with
BridgeTex, West Texas Gulf Pipeline, Permian Express 2 and delivery
into Alon’s facility.”
“We believe that the BSG System will be of tremendous benefit to
producers in the Permian Basin,” said Alan Moret, Alon’s senior
vice president of supply. “The connection to our Big Spring
Refinery provides greatly improved access to an essential local
market and we look forward to working with producers and shippers
on the BSG System.”
BSG System Details
The BSG System will serve crude oil producers and other shippers
in the Permian Basin and will span Martin, Howard, Glasscock and
Midland counties in Texas. Currently, the system is expected to
include more than 250 miles of gathering pipeline, 200 miles of
transportation mainline and 425,000 barrels of expanded third-party
and operational storage capacity.
In addition to the Alon Big Spring Refinery connection, under
its FERC tariff, the BSG System will offer delivery into the
BridgeTex Pipeline and Sunoco-operated pipelines West Texas Gulf
Pipeline and Permian Express 2. The BSG System will provide West
Texas producers a direct path to approximately 950,000 bbl/d of
pipeline takeaway from Colorado City to Texas Gulf Coast and
Mid-Continent market centers.
About Navigator Energy Services, LLC
Headquartered in Dallas, Navigator provides oil and natural gas
producers with comprehensive midstream services including crude oil
and natural gas gathering, transportation, storage and natural gas
compression and processing. Navigator and its affiliates are
focused on domestic midstream opportunities in both developing and
mature producing areas. Navigator is supported by an equity
commitment from First Reserve. To learn more about Navigator,
please visit www.navigatorenergyservices.com.
About Alon USA Partners, LP
Alon USA Partners, LP is a Delaware limited partnership formed
in August 2012 by Alon USA Energy, Inc. (NYSE: ALJ). Alon Partners
owns and operates a crude oil refinery in Big Spring, Texas, with
an aggregate crude oil throughput capacity of approximately 73,000
barrels per day. Alon Partners refines crude oil into finished
products, which are marketed primarily in West Texas, Central
Texas, Oklahoma, New Mexico and Arizona through its wholesale
distribution network to both Alon Energy’s retail convenience
stores and other third-party distributors. To learn more about Alon
Partners, LP, please visit www.alonpartners.com.
TEN|10 GroupMeredith Howard,
210-737-4478meredith.howard@ten10group.com