EnLink Midstream Plans Delaware Basin Crude Gathering System

   By Colin Kellaher 
 

EnLink Midstream Partners LP (ENLK) and EnLink Midstream LLC (ENLC) on Wednesday said the partnership will invest $35 million to $40 million this year to build a new crude-oil gathering system in the Northern Delaware Basin.

EnLink said the system, dubbed "Avenger," is anchored by a 10-year contract with Devon Energy Corp. (DVN) and is supported by dedications from Devon's Todd and Potato Basin development areas in New Mexico. Devon previously said it plans to direct a significant portion of its capital budget into Delaware Basin development.

EnLink said it expects initial Avenger operations to begin during the third quarter, with full-service operations starting in the first quarter of 2019. The partnership said it expects further capital expenditures in future years as Devon continues to develop its acreage in the region.

Devon earlier this month said it agreed to sell its stakes in EnLink Midstream Partners and EnLink Midstream to Global Infrastructure Partners for $3.125 billion.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

June 27, 2018 08:08 ET (12:08 GMT)

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