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.
Driftwood will help meet soaring demand for LNG, says co-founder Souki.
Congestion delaying LNG shipments via the Panama Canal is expected to last through the peak demand winter months, traders close to the situation said on Jan. 14, although the canal’s regulator said it had made changes to speed up transit.
Pace and response to vaccines add uncertainty to planning, says agency analyst.