Navigator Energy Services LLC, a crude oil midstream company, announced today that it will provide crude oil gathering services to Surge Operating LLC for an area of mutual interest spanning approximately 25,000 acres in Howard County, Texas.
Navigator plans to begin construction later this year on a new gathering system for Surge Energy, which will have multiple tie-ins into the existing Big Spring Gateway System (BSG System) and 30,000 barrels (1.2 million gallons) of crude oil storage capacity.
In conjunction with the new gathering system, Navigator plans to expand the capacity of the BSG System by 30,000 bpd to 170,000 bpd. Additionally, Navigator will expand its storage capacity by more than 250,000 barrels (10.5 million gallons) to 750,000 barrels (31.5 million gallons) of total storage. Navigator will launch an open season in the coming weeks for the new capacity.