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.
Husky, the operator and majority owner of the White Rose Field, said it expects production there to ramp up to about 20,000 barrels per day after the start-up.
Producers completed 5,749 wells in Texas from January to July versus 6,514 in the same period last year, the Railroad Commission of Texas said on Aug. 16.
Companies added six oil rigs in the week to Aug. 16, the biggest increase since April, bringing the total count to 770, Baker Hughes, a GE company, said in its weekly report.