The Alpha Crude Connector is one of the best examples of Frontier Energy Service's performance excellence.
Based on more than 250 years of combined experience in all sectors of the energy industry, Frontier has a reputation as a leader in the commercial development of midstream and downstream projects. We are dedicated to delivering innovative and competitively priced energy products and services for the midstream oil and natural gas industry and pride ourselves on building trust with our partners.
We have been active in the Permian Basin for nearly three decades and the Alpha Crude Connector was the realization of Frontier's dedication and expertise.
The Alpha Crude Connector is a 500+ mile crude oil transmission system with more than 300,000 barrels of crude oil storage capacity that is turning today's energy vision into tomorrow's energy solutions for the vast Northern Delaware Basin. It was constructed to accommodate soaring oil and gas production in the prolific Permian Basin and now provides access to multiple downstream markets via interconnects with Plains, Enterprise and Sunoco pipelines, as well as to the local Western Refining and Holly Frontier refineries and a Genesis rail terminal at Wink.
The Alpha Crude Connector provides an unprecedented structure for shippers to obtain low-cost, long-term capacity without volume commitments. Simply put, the pipeline provides the optionality to transport crude oil to preferred markets while leveraging pricing power.
A 50/50 joint venture with Concho Resources, Frontier Energy Services designed and constructed the Alpha Crude Connector project and operated the system to provide pipeline connectivity for hundreds of crude oil wells to numerous market outlets in the Northern Delaware Basin. Producers and marketers, who once had to cope with uncertain and underdeveloped county and lease roads over some five million acres, now save $1 to $2 per barrel by transporting product through the Alpha Crude Connector.
To bring this project to fruition, Frontier dedicated its extensive resources to overcome significant regulatory and environmental barriers. Frontier's expertise guided the project through the Federal Energy Regulatory Commission (FERC), Bureau of Land Management, the State of New Mexico, and 12 other governmental agencies that oversee permitting requirements in this protected area. Frontier's vast experience and entrepreneurial spirit prevailed and the Alpha Crude Connector is a FERC regulated pipeline that provides our partners with transparency, commitment, flexibility, flow assurance, and downstream optionality.
These efforts resulted in Hart Energy's Midstream Business naming the Alpha Crude Connector as its 2015 Project of the Year.
And in January 2017, Plains All American Pipeline announced its decision to acquire the Alpha Crude Connector pipeline gathering and storage system for $1.2 billion. That's the kind of results we like to see come from building and maintaining successful partnerships.
Frontier Energy Services looks forward to putting this same expertise to work for our customers in plays across the U.S.