Exxon Mobil Corp. (NYSE: XOM) and Plains All American Pipeline LP (NYSE: PAA) are working together to build a Permian crude oil and condensate pipeline, Plains said in a June 12 press release.
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.
RELATED: Pipeline Shortage Puts Permian’s Crude, NGL Production At Risk
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