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Exxon goes all in on the Permian
Investors - FEBRUARY 4, 2019

Exxon goes all in on the Permian

by Andrea Zander

ExxonMobil, Plains All American Pipeline and Lotus Midstream have formed the Wink to Webster Pipeline LLC Joint Venture.

It has 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 joint venture and has already initiated pre-construction activities. The joint venture 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.

 

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