The Mason Station, owned and operated by Western Refining’s subsidiary, includes crude oil storage, truck offloading stations, and a pipeline connection to the Kinder Morgan El Paso crude oil pipeline (Kinder Morgan Line).
Second phase of work involves about 50 miles of crude oil gathering lines in Southern New Mexico and West Texas. The work is expected to be completed in the second quarter of 2013.
Upon completion of the two phases, the Delaware Basin System will be able to provide about 100,000 barrels per day of crude oil to the Kinder Morgan Line for El Paso’s refinery.
Western Refining president and CEO Jeff Stevens said the company is evaluating all of its options to expand its logistics in the Permian Basin and Four Corners regions.
"Our unique location and existing infrastructure present us with a number of opportunities to maximize our flexibility to deliver shale crude oil to both our refineries, and potentially others, by capitalizing on the increased crude oil production in these regions," Stevens added.
The company is also evaluating the feasibility of third and fourth phases for the project.
