Rangeland Energy has executed a long-term agreement with a subsidiary of Delek US Holdings to be an anchor shipper of crude oil on the Rangeland Integrated Oil (RIO) Pipeline, which will connect production from the Delaware Basin to the crude oil market center in Midland, Texas. Delek Logistics Partners, which is the logistics arm of Delek US, will own 33% of the RIO Pipeline and supporting terminals.
The RIO Pipeline is part of the RIO System, a multi-part system designed to provide crude oil producers, refiners and marketers with pipeline, rail and other logistics services to support regional production and downstream transportation of crude oil and condensate. The system’s rail facility, called the RIO Hub, is located near Loving, N.M., and began operations in November 2014. It provides inbound frac sand services, including unloading, storage and truck loading.
According to Rangeland Energy, the RIO Hub will also offer storage, loading and outbound rail service for crude oil, as demand increases. An additional 30-mile pipeline will connect the RIO Hub to the State Line Terminal, the company said.
“The addition of an anchor shipper is a significant milestone in the ongoing expansion of the RIO System,” Christopher Keene, CEO, Rangeland Energy, said in a statement. “We are excited to begin construction of the RIO Pipeline and look forward to working with Delek US to facilitate the transportation of crude oil from the Delaware Basin to its refineries and other potential markets.”