Velocity Central Oklahoma Pipeline LLC, a subsidiary of Velocity Midstream Partners LLC (Velocity), entered into a letter of intent (LOI) with CVR Energy Inc. (CVI) related to Velocity's construction of a crude oil gathering and transportation system in the Scoop and Stack plays, Velocity said Sept. 15. Producers in the Woodford, Springer, and Meramec formations will be served. CVI might provide equity, Velocity added.

Oil will be gathered and transported from points in Grady, Stephens, Garvin, McClain, Canadian, Kingfisher and Blaine counties, Okla. It will be transported to CVI's Wynnewood, Okla., refinery and the Cushing, Okla., hub where there is significant storage and pipeline access to its Coffeyville, Kan., refinery.

The new pipeline will let producers in the Scoop separate heavier crude barrels coming from the Springer and Woodford from the lighter condensate barrels coming from the Woodford condensate window. A pipeline extension will be placed in the Stack play, the company added, giving CVI direct access to additional crude from the Woodford and Meramec formations.

Velocity recently constructed a 100,000 barrel per day condensate pipeline through the core of the Scoop for Continental Resources Inc. (CLR). The system has been operating since June.

Velocity Midstream Partners LLC is based in Tulsa, Okla.

CVR Energy Inc. is based in Sugar Land, Texas.