Lotus Midstream LLC has agreed to participate in a joint venture previously announced by ExxonMobil and Plains All American Pipeline, L.P., to construct a pipeline to transport crude oil and condensate from the Permian Basin to Texas Gulf Coast markets. The parties expect to form the joint venture before the end of the year.
The parties are advancing plans for a proposed common carrier pipeline designed to ship more than 1 million barrels of crude oil and condensate per day, providing a safe, efficient and cost-effective option to transport ExxonMobil and other third-party crude oil and condensate from multiple locations in the Permian, the most prolific basin in North America, to key market destinations in Texas.
The pipeline will originate in both Wink and Midland, Texas, with delivery at various points in the Gulf Coast region, including Webster, Baytown and Beaumont, Texas. As previously announced, a priority will be placed on using existing pipeline corridors to help limit the potential community and environmental disruptions.
Lotus Midstream is an independent energy company focused on the development of midstream infrastructure and services for the transport of crude oil and condensate from the wellhead to market. Lotus is backed by a $400 million capital commitment from EnCap Flatrock Midstream.
