ExxonMobil, Plains All American and Lotus Midstream Proceeding with Wink to Webster Pipeline
-
Parties formalize previously announced joint venture
-
Wink to Webster Pipeline to transport more than 1 million barrels of
crude oil and condensate per day
-
Executed long-term shipper commitments
-
Expected in-service by first half of 2021
ExxonMobil, Plains All American Pipeline, L.P. (Plains), and Lotus
Midstream, LLC announced today they have formed the Wink to Webster
Pipeline LLC Joint Venture (JV) and have ordered nearly 650 miles of
domestically sourced 36-inch-diameter line pipe. The new common-carrier
pipeline system will provide more than 1 million barrels per day of
crude oil and condensate capacity and will be constructed from the
Permian Basin in West Texas 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.
The Wink to Webster Pipeline will provide safe, reliable and
cost-effective transport for ExxonMobil and other Permian producers to
market destinations in Texas. The project will be supported by new
operational storage capacity at the origin points to facilitate the
segregation of multiple crude qualities prior to shipment. Once online,
the project will play a critical role in supporting growing production
in one of the world’s most prolific crude oil basins.
About ExxonMobil
ExxonMobil, the largest publicly traded international oil and gas
company, uses technology and innovation to help meet the world’s growing
energy needs. ExxonMobil holds an industry-leading inventory of
resources, is one of the largest refiners and marketers of petroleum
products, and its chemical company is one of the largest in the world.
For more information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.
About Plains All American Pipeline
Plains All American Pipeline, L.P. (NYSE: PAA) is a publicly traded
master limited partnership that owns and operates midstream energy
infrastructure and provides logistics services for crude oil, NGLs and
natural gas. PAA owns an extensive network of pipeline transportation,
terminalling, storage, and gathering assets in key crude oil and NGL
producing basins and transportation corridors and at major market hubs
in the United States and Canada. On average, PAA handles more than 5
million barrels per day of crude oil and NGL in its Transportation
segment. PAA is headquartered in Houston, Texas. More information is
available at www.plainsallamerican.com.
About Lotus Midstream
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. For more
information please visit www.lotusmidstream.com.
Cautionary Statement
Statements that reference future events or conditions in this press
release are forward-looking statements. Actual future results, including
project plans and capacities may differ significantly depending on
changes in oil or gas prices and other market or economic factors that
affect the petroleum industry; the outcome of commercial negotiations;
unexpected technical difficulties or other technical or operating
factors; the actions of governmental authorities or regulatory agencies;
the actions of competitors; and other factors listed under the heading
“Factors Affecting Future Results” on the Investor page at the
ExxonMobil website at www.exxonmobil.com.
Forward-Looking Statements
Certain matters discussed in this release are forward-looking statements
that involve risks and uncertainties that could cause actual results or
outcomes to differ materially from results or outcomes anticipated in
the forward-looking statements. These risks and uncertainties include,
among other things, shortages, cost increases or delay in receipt of
supplies, materials or labor; failure to implement or capitalize, or
delays in implementing or capitalizing, on expansion projects, whether
due to permitting delays, permitting withdrawals or other factors; the
impact of current and future laws, rulings, orders, governmental
regulations, accounting standards and statements and related
interpretations; weather interference with business operations or
project construction, including the impact of extreme weather events or
conditions; environmental liabilities, issues or events that result in
construction delays or otherwise impact targeted in-service dates;
interruptions in service on third-party pipelines or facilities; general
economic, market or business conditions and the amplification of other
risks caused by volatile financial markets, capital constraints and
pervasive liquidity concerns; and other factors and uncertainties
inherent in the transportation, storage, terminalling and marketing of
crude oil as discussed in PAA's filings with the Securities and Exchange
Commission.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190130005219/en/
Copyright Business Wire 2019
