Andeavor says that it received sufficient commitments from third-party shippers to build the Conan Crude Oil Gathering Pipeline system in the Delaware Basin.

The system will be around 130-miles long and will move crude oil from origins in Lea County, New Mexico, and Loving County, Texas, to a terminal to be built in Loving County, Texas, where the gathering system interconnects with long-haul pipeline carriers.

The first phase of the Conan Crude Oil Gathering Pipeline system is designed to provide capacity of around 250,000 barrels per day. Future phases may expand capacity up to 500,000 barrels per day.

The system is under construction and is expected to enter commercial service in mid-2018. Capital investment for the first phase is around $225 million of which $75 million is expected to be spent in 2017.