The companies signed a letter of intent to form a joint venture that will construct a pipeline aimed to provide a transport option for Exxon Mobil and other third-party production in the Permian Basin to market destinations on the Texas Gulf Coast.
The proposed common carrier pipeline would be designed to ship more than 1 million barrels per day of crude oil and condensate and would originate in both Wink and Midland, Texas. Delivery points will be in Webster, Baytown and Beaumont, Texas.
Plains said a priority would be placed on using existing pipeline corridors to help limit potential community and environmental disruptions.
Enterprise Products Partners LP entered into an agreement with an Occidental Petroleum Corp. affiliate to jointly develop a new 150 million cubic feet per day cryogenic natural gas processing plant.
Plains All American said it expects the Cactus II Pipeline will add up to 585,000 barrels per day of Permian pipeline takeaway capacity when it is operational, which is targeted in third-quarter 2019.
Plains All American Pipeline LP (NYSE:PAA) has begun an binding open season for committed crude oil transportation from the Permian Basin to the Corpus Christi/Ingleside area.