JP Energy Partners LP (NYSE: JPEP) signed a 10-year fee-based gathering agreement with Discovery Natural Resources LLC to construct and operate an extension of its Silver Dollar Pipeline, the company said Feb. 6.

The extension, consisting of about 55 miles of pipeline, will now go into the Midland Basin’s core. It will run from southern Reagan County, Texas, north into Glasscock County.

The roughly-$36 million project is scheduled to be completed in 2015’s second half. Proceeds will initially fund the revolving credit facility, the company said.

The agreement is supported by a total of 53,000 acres in Glasscock, Irion, Reagan and Sterling counties, the company said. JP Energy will provide oil trucking and other services for Discovery, the company added.

“The Midland Basin is a key area of focus for JP Energy, and we believe that our Silver Dollar Pipeline is a strategic and well-positioned crude oil gathering system. We are excited to use the market knowledge we have gained through our existing operations in the Permian Basin and Eagle Ford to partner with Discovery and further expand our comprehensive crude oil midstream solution,” said CEO J. Patrick Barley.

“We expect that as Discovery and other producers continue to develop the Spraberry, Wolfberry and Wolfcamp plays of the Midland Basin, JP Energy’s locational advantages and broad range of logistical capabilities will prove valuable to both the producer community and downstream customers in the crude oil markets.”

JP Energy Partners LP is an Irving, Texas-based midstream MLP.