27.09.16. Velocity Midstream Partners, LLC has announced that its wholly-owned subsidiary Velocity Central Oklahoma Pipeline LLC has entered into an agreement with a subsidiary of CVR Refining, LP, related to Velocity’s construction of a crude oil pipeline and terminal directly linking the fairway of the South Central Oklahoma Oil Province (‘SCOOP’) to CVR Refining’s Wynnewood, Oklahoma, refinery.
CVR Refining will hold a 40 percent stake in the newly formed joint venture, Velocity Pipeline Partners (VPP), and it will contract with VPP for transportation services. Velocity will act as manager of the joint venture and operate the pipelines following the completion of the pipeline’s construction.
In addition to the Wynnewood refinery, which has a rated capacity of 70,000 bpd, CVR Refining also owns and operates a refinery in Coffeyville, Kansas, with a rated capacity of 115,000 bpd. The Wynnewood refinery is located in close proximity to the SCOOP play and the Cushing hub. Velocity’s new crude oil project provides the Wynnewood refinery with direct pipeline access to SCOOP production. The new pipeline also enables producers in the SCOOP to segregate their heavier crude barrels, produced from the Springer and Woodford oil formations, from their lighter barrels, produced from the Woodford condensate formation.
Velocity also expects to commence a subsequent crude oil pipeline project looping the majority of Velocity’s existing pipeline. The loop will provide producers crude oil segregation along the entire SCOOP fairway, reducing crude trucking costs. The project will also allow Velocity to leverage its existing footprint, multi-line rights of way and construction and operations teams to construct the second pipeline and expanded terminal facilities. In addition to that construction, Velocity will continue to build out gathering laterals and injection stations to serve SCOOP producers.

27th September 2016