Wink-to-Webster, a pipeline joint venture that would move more than 1 million b/d of Permian Basin oil to the Houston area has MPLX LP, Delek US and Rattler Midstream LP as sponsors, joining ExxonMobil, Plains All American Pipeline and Lotus Midstream.
The 36-inch diameter pipeline would have origin points near Wink and Midland in West Texas, with delivery to multiple locations in the Houston market, including Webster and Baytown, with connectivity to Texas City and Beaumont.
“The project is underpinned by a significant volume of long-term commitments, and project costs will be shared proportionately among the partners,” the sponsors said. “The project is expected to commence operations in early 2021.”
ExxonMobil and Plains unveiled the Wink project in mid-2018. Lotus, formed last year by EnCap Flatrock Midstream, joined the venture in September. And in January the initial sponsors said they had ordered nearly 650 miles of U.S.-sourced pipeline to advance the system, which is expected to generate more than 3,100 construction jobs.
Plains is to lead project construction of the project. ExxonMobil has lined up several Gulf Coast expansions for its booming Permian production. The decision to advance the project came shortly after ExxonMobil sanctioned a third unit at its Beaumont refinery east of Houston, which would increase capacity by more than 65%, or 250,000 b/d. The expansion was credited to increasing Permian oil volumes.