Plains All American Pipeline, Exxon Mobil and Lotus Midstream LLC finalized a joint venture to start a 650-mile pipeline project, per an announcement on Wednesday.
The companies are planning to build the 650-mile project using 36-inch-diameter pipe to carry more than 1 million barrels of oil and condensate per day. Analysts believe the project costs will be in the $2 billion region.
Pipeline capacity has caused a problem for companies needing to move their product to market in the Gulf, but the Wink-to-Webster pipeline looks to help alleviate some of those issues.
The companies said that the pipeline operator Plains will lead the construction of the pipeline, which will start operations in the first half of 2021.