Lotus, Exxon and Plains All American to Team up on Multibillion-dollar Pipeline System

Lotus Midstream, backed by the San Antonio private equity firm EnCap Flatrock Midstream, plans to join Exxon Mobil and Houston’s Plains All American to construct a multibillion-dollar crude oil pipeline system from West Texas to Houston and Beaumont.

Lotus Midstream was formed earlier this year, and made waves a month ago as they announced their agreement to purchase a Texas pipeline system, the Centurion pipeline system, from Occidental Petroleum.

Lotus is planning to create a formal joint venture with Exxon and Plains who announced the pipeline in June.

Earlier this year, Exxon announced its intentions to triple its Permian oil and gas production by 2025.

Plains and Magellan Midstream Partners of Oklahoma recently expanded their BridgeTex oil pipeline. The BridgeTex serves as the major artery from West Texas to the Houston region.

Source:
Houston Chronicle