Jupiter to proceed with Permian oil pipeline

23 October 2018, Week 42, Issue 429

JupiterMLP has said it now has sufficient funding to build the 1 million bpd Jupiter pipeline in Texas, from the Permian Basin to the Port of Brownsville. The Houston-based midstream company received a funding commitment that was sufficient for this from Charon System Advisors, an energy infrastructure affiliate of Spinel Investment. 

Jupiter also said it would hold an open season for the remaining capacity on the pipeline in November. The project is expected to be operational in the third quarter of 2020, with origination points near Midland, Pecos and Crane, and offtake points near Three Rivers. 

The pipeline will be the only one from the Permian that can access all three deepwater ports in Texas – in Houston, Corpus Christi and Brownsville – as well as a very large crude carrier (VLCC) facility, said Jupiter. The company is planning to build a loading facility for VLCCs 6 miles (10 km) off the coast near Brownsville, which is due to come online in early 2021. 

Jupiter announced in May that it had secured all initial government and regulatory permits to load and unload smaller vessels of up to 65,000 deadweight tonnes – or Panamax-sized vessels – at the planned Jupiter export terminal. 

The company previously announced that it had secured permits to construct over 2.8 million barrels of storage in Brownsville and had additional permits on file to increase its storage footprint there to more than 6 million barrels. There is sufficient acreage for 10 million barrels of storage capacity at the site, according to Jupiter. 

The firm is also in the final stages of securing a permit to construct a 170,000 bpd processing facility at the same site for processing light tight oil into on-spec gasoline and ultra-low sulphur diesel for the US and Mexican markets.

The announcement about the Jupiter pipeline will be a welcome one for producers in the Permian, which is struggling with takeaway capacity bottlenecks that are not expected to ease until the second half of 2019. 

 

Edited by

Anna Kachkova

Editor

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