Longhorn Midstream Holdings LLC launched a binding open season on July 15 to obtain commitments to support the development of its Touchdown Crude Oil Gathering System in the Northern Delaware Basin.

The greenfield pipeline system will initially gather crude oil from origination points in Eddy County, N.M., and deliver to destination points in Eddy. The binding open season for the initial phase of the gathering system commenced at 8 a.m. CST July 15 and is scheduled to conclude at 5 p.m. CST on August 14.

Business Update

The Touchdown Crude Oil System, which will support multiple customers willing to make long-term commitments, will initially consist of about 50 miles of gathering and transportation pipelines.

Construction has begun and the gathering system is expected to enter partial service in September and to be fully commissioned in the first quarter of 2020. In addition to the Touchdown Crude Oil System, Longhorn also is constructing a gas gathering system in the Northern Delaware Basin. The Touchdown Gas Gathering System will initially provide low-pressure gathering, dehydration, compression and high-pressure gathering services for liquids-rich natural gas produced by customers in the area.

Management Perspective

“The Northern Delaware Basin is one of the most economic areas in the country for oil and gas development,” said Elliot Gerson, managing partner at Longhorn. “The combination of prolific well results and insufficient existing infrastructure creates a compelling opportunity to offer our customers midstream solutions that will help unlock the underlying resource potential.”

Mike Davis, managing partner at Longhorn, added, “We are excited to develop our regional gathering systems, which will provide our customers with flow assurance and market optionality. The Touchdown Crude Oil and Gas Gathering Systems represent exactly the type of projects that the Longhorn team excels at developing and operating, and we look forward to continuing to expand our presence in the area by offering our customers a full suite of midstream solutions.”

Open Season Information

The binding open season process provides potential customers with the opportunity to obtain crude oil gathering and transportation service on the Touchdown Crude Oil System by making commitments during the binding open season.

A copy of the crude oil gathering agreement, as well as a copy of LM Touchdown’s open season procedures will be available to interested customers upon the execution of a confidentiality agreement with LM Touchdown. A copy of the confidentiality agreement will be provided upon request. All requests should be directed to Ryan Godfrey at 469-501-2579 or rsg@longhornmidstream.com.

All binding commitments must be received by 5 p.m. CST on Aug. 14. To the extent that capacity offered through the open season remains unsubscribed, LM Touchdown reserves the right, after the conclusion of the open season, to accept additional customer commitments. Any updates regarding the open season and potential future commitment opportunities will be posted at longhornmidstream.com.

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