Wink to Webster Pipeline LLC on Aug. 5 announced that affiliates of MPLX LP, Delek US Holdings LP and Rattler Midstream LP have joined Exxon Mobil Corp., Plains All American Pipeline LP and Lotus Midstream LLC as partners in the joint venture (JV) to develop the Wink to Webster crude oil pipeline project.
The Wink to Webster pipeline is set to provide more than one million barrels per day of takeaway capacity in the Permian Basin utilizing domestically sourced 36-inch-diameter line pipe. The project will have origin points in Wink and Midland, Texas and deliver to multiple locations in the Houston market, including Webster and Baytown, with connectivity to Texas City and Beaumont.
In a separate release, Delek US said it entered an agreement to acquire a 15% ownership interest in the Wink to Webster Pipeline. The company said expected net investment in the JV will be in the range of $340 million to $380 million.
The project is underpinned by a significant volume of long-term commitments, and project costs will be shared proportionately among the partners. The pipeline is expected to begin operations in early 2021.
The Wink to Webster pipeline will play a critical role in supporting growing production in one of the world’s most prolific crude oil basins. Priority will be placed on utilizing existing pipeline corridors and advanced construction techniques to help limit community and environmental impacts, according to the company press release.
The project is expected to generate more than 3,100 construction jobs and will provide safe, reliable and cost-effective transport for Permian Basin producers to market destinations in Texas, the release said.
Recommended Reading
Triangle Energy, JV Set to Drill in North Perth Basin
2024-04-18 - The Booth-1 prospect is planned to be the first well in the joint venture’s —Triangle Energy, Strike Energy and New Zealand Oil and Gas — upcoming drilling campaign.
EIG’s MidOcean Closes Purchase of 20% Stake in Peru LNG
2024-04-23 - MidOcean Energy’s deal for SK Earthon’s Peru LNG follows a March deal to purchase Tokyo Gas’ LNG interests in Australia.
Crescent Point Divests Non-core Saskatchewan Assets to Saturn Oil & Gas
2024-05-07 - Crescent Point Energy is divesting non-core assets to boost its portfolio for long-term sustainability and repay debt.
Permian Resources Adds More Delaware Basin Acreage
2024-05-07 - Permian Resources also reported its integration of Earthstone Energy’s assets is ahead of schedule and raised expected annual synergies from the deal.
Evolution Petroleum Sees Production Uplift from SCOOP/STACK Deals
2024-05-07 - Evolution Petroleum said the company added 300 gross undeveloped locations and more than a dozen DUCs.