ExxonMobil (XOM) and Plains All American Pipeline intend to create a joint venture to build a new crude oil and condensate pipeline from the Permian Basin of West Texas/New Mexico to the Texas Gulf Coast, Kallanish Energy reports.

The pipeline’s capacity would be in excess of 1 million barrels per day, the companies said, in a joint statement.

It would originate in both Wink and Midland in West Texas with delivery points in Webster, Baytown and Beaumont in East Texas.

The price tag was not disclosed.

The pipeline is also expected to transport crude and condensate from other producers.

The companies said the pipeline would use existing pipeline corridors as much as possible to reduce the impacts on local communities.

ExxonMobil has acquired a crude oil terminal in Wink. Last January, the oil giant said it intends to triple its Permian production to 600,000 barrels of oil-equivalent per day (BOE/d) by 2025, and intends to spend $2 billion on Permian infrastructure.

It currently produces about 165,000 net BOE/d. It says its Permian assets may hold as much as 6 billion BOE.


Source: Kallanish Energy