Noble Midstream, Salt Creek to Build Pipeline System in Delaware Basin



Salt Creek Midstream, LLC and Noble Midstream Partners LP have entered into a joint venture to create a crude oil pipeline and gathering system in the Delaware Basin.

The 50/50 partnership will allow for construction of a 200,000 barrels of oil per day pipeline system that will stretch 95 miles and will be 20 inches in diameter. The system will start in Pecos County, Texas with additional connections in Reeves and Wink counties.

Noble Midstream CEO Terry R. Gerhart said the new pipeline system will provide “critical downstream connectivity” and “enhanced market optionality” for producers in the Southern Delaware Basin.

Salt Creek CEO Zach Lee added that his company is “achieving great momentum over an incredibly rapid timeframe” with its “multiple developments spanning the Permian.”

The companies anticipate the transaction to close in 4Q 2018. At closing, the project will be underpinned by about 180,000 dedicated acreage contributions from Noble Midstream, Salt Creek and five other Southern Delaware Basin producers.

Salt Creek has begun construction of the pipeline and has an expected operational date in 2Q 2019.



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