Exxon Mobil Corp. (NYSE: XOM), Plains All American Pipeline LP (NYSE: PAA) and Lotus Midstream LLC said Jan. 30 they will build a Texas crude pipeline that can carry more than 1 million barrels per day of oil and condensates.
The Wink-to-Webster pipeline will connect the Permian Basin in West Texas to the Texas Gulf Coast, and comes when booming production has led to tight pipeline capacity in the lucrative shale basin, resulting in lower prices for regional crude.
Pipeline operator Plains will lead the construction of the pipeline, which will start operations in the first half of 2021, the companies said.
Waha Hub spot prices tumble to -$3.38/MMBtu, setting a record for the spread to Henry Hub.
Stranded gas in the Permian Basin crushes Waha spot prices to around 12 cents/MMBtu.
Country’s outlook has become more dire since the last report a year ago.