In an agreement, Delek Logistics Partners LP (NYSE: DKL) will be the anchor shipper for Rangeland Energy’s RIO Pipeline, Rangeland said March 20. RIO is the Rangeland Integrated Oil Pipeline.

The 107-mile pipeline and its end terminals are scheduled to be built in 2015’s second quarter. Delaware Basin crude will be shipped to markets in Cushing, Okla., and and the U.S. Gulf Coast.

The pipeline will originate at the RIO State Line terminal, the crude oil gathering hub at the Texas-New Mexico border. It will end at the RIO Midland Terminal. The pipeline and terminals are scheduled to be in service in the first half of 2016.

RIO will process up to 85,000 barrels per day (bbl/d), with initial capacity of 55 Mbbl/d.

Delek Logistics Partners LP will own 33% of the pipeline and supporting terminals. It is a subsidiary of Delek US Holdings Inc.

The pipeline will be part of the RIO midstream and downstream system. The RIO system’s rail facility is near Loving, N.M.

Rangeland Energy is based in Sugar Land, Texas.

Delek Logistics Partners LP is based in Brentwood, Tenn.