Velocity Signs Shell Western Services Agreement

Velocity Midstream Partners has entered a long-term agreement with Shell Western E&P for transportation and terminal services for Shell’s light oil and condensate production from the Harrison Ranch in Texas, US.

Velocity Midstream has started construction of the Gardendale pipeline to transport light oil through Webb, Dimmit and La Salle counties, terminating at Velocity’s Gardendale Hub near Gardendale, Texas.

The Gardendale terminal and hub will have an initial storage capacity of more than 100,000 barrels and will provide access to downstream pipelines, truck loading and unloading facilities, and the US Development Group’s rail loading facilities adjacent to Velocity’s terminal.

Velocity Midstream is formalising interconnection agreements with several downstream pipelines including Enterprise Products Partners and Plains All American Pipeline.

Velocity is also finalising terms with several actively drilling producers for gathering and transportation pipelines serving the Eagle Ford Shale’s lower API gravity oil window.