3 firms join forces to build 650 mile new crude oil pipeline in Permian Basin

Lotus Midstream, LLC, a firm with 3,000 miles of pipeline running to the Cushing oil hub in Oklahoma has joined ExxonMobil and Plains All American Pipeline, L.P. in forming a nearly 650 mile pipeline in the Permian Basin of West Texas.

The Wink to Webster Pipeline LLC Joint Venture includes construction of a 36-inch-diameter line pipe to carry more than 1 million barrels a day of crude oil and condensate capacity to the Texas Gulf Coast.

The Wink to Webster Texas-based pipeline system will have origin points at Wink and Midland to multiple locations near Houston, including Webster and Baytown, with connectivity to Texas City and Beaumont. The project is underpinned by a significant volume of long-term commitments and is targeted to commence operations in the first half of 2021.

Plains will lead project construction on behalf of the JV and has already initiated pre-construction activities. The JV anticipates the project will generate more than 3,100 construction jobs. Priority will be placed on utilizing existing pipeline corridors and advanced construction techniques to help limit community and environmental impacts.

Based in Sugar Land, Texas, Lotus Midstream is an independent energy company focused on the development of midstream infrastructure and services necessary to transport crude oil and condensate from the wellhead to market. Lotus owns the Centurion Pipeline System, a large-scale, integrated network of approximately 3,000 miles of crude oil gathering and transportation pipelines that extends from southeast New Mexico across the Permian Basin of West Texas to Cushing, Oklahoma. Lotus Midstream is backed by EnCap Flatrock Midstream.

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