LOVING >> A Texas based company, Rangeland Energy, will build a system designed to transport crude oil from the Delaware Basin to markets across the U.S. using an outbound rail and pipeline.
“It’s nothing new happening out there, but it’s part of Rangeland’s master plan,” said Jay Jenkins, president of the Carlsbad Department of Development.
Rangeland is developing its RIO Pipeline project, which will connect what it calls the RIO Hub, a 300-acre rail terminal located in Loving, to other market centers.
Construction will begin in the second quarter of 2016. Rangeland already owns the land it will be building on.
“Initial capacity will be 50,000 barrels per day, expanding to 85,000 barrels per day or more, depending on how many additional pump stations are ultimately added,” Rangeland’s website says.
The project will consist of a 30-mile pipeline development that will connect the RIO Pipeline with the RIO Hub to the RIO State Line Terminal, which will allow crude oil in the Delaware Basin to be moved to other markets.
Rangeland will then construct a 107-mile pipeline from its RIO State Line Terminal, a crude oil gathering hub at the Texas-New Mexico border, to its Midland terminal.
The rail facility will provide services for outbound crude oil, natural gas liquid and inbound frac sand.
“Although the oil prices have slipped, we are fortunate to have these huge long-term investments in our area,” Jenkins said.
The hub in Loving started operations in November by providing customers inbound fracturing sand services, including unloading, storage and truck loading.
“As customer demand increases, Rangeland will build high-speed unit train loading facilities at the RIO Hub which will bring capacity to more than 100,000 barrels per day,” Rangeland’s website says.
The Delaware Basin is one of the most active, economic and prolific basins in the U.S. It covers Southeastern New Mexico and parts of West Texas.