JupiterMLP, LLC (Jupiter), a privately held midstream company that provides crude oil producers and gas plants with logistics and offtake solutions, has announced that it has secured a funding commitment from Charon System Advisors sufficient to build the 1 000 000 bpd capacity Jupiter Pipeline from the Permian Basin to the Port of Brownsville, Texas.
Expected to be operational in late 3Q20 with origination points near Midland, Pecos and Crane, Texas and offtake points near Three Rivers, Texas, Jupiter has completed engineering, design, and right-of-way planning for the pipeline. As designed, it will be the only pipeline out of the Permian Basin that can access all three deepwater ports in Texas (Houston, Corpus Christi and Brownsville) and will have direct access to a fully capable VLCC loading facility.
Charon’s investment comes on the heels of Jupiter announcing in May that it had secured all initial governmental and regulatory permits to load/unload vessels of up to 65 000 deadweight tons or Panamax sized vessels at the Jupiter Export Terminal. Jupiter had already secured permits to construct more than 2.8 million bbls of storage in Brownsville and has additional permits on file to increase its storage footprint to more than 6 million bbls, of the potential 10 million bbls of storage capacity. The company is also in the final stages of securing a permit to construct a 170 000 bpd processing facility which is designed to process light US shale crude into on-spec US gasoline and ultralow sulfur diesel.
Albert Johnson, President of Jupiter Pipeline LLC, commented: “With the backing by Charon and the firm commitments that Jupiter has already secured on the Jupiter Pipeline, we will be holding an open season for the remaining capacity in November.”
Tom Ramsey, CEO of Jupiter, added: “From our first purchase crude oil business and Jupiter Transport trucking company, to construction of the Jupiter pipeline, its connections in the Permian and the ability to load VLCCs offshore near Brownsville, we are executing on our long-term, global strategy of connecting the ‘Wellhead to the World’.”
Adrayll Askew, Partner of Charon, added: “We are excited about our investment in the Jupiter pipeline along with Jupiter management and our investment partners. We are fully committed to Jupiter’s long term global strategy that focuses on integration of the midstream supply chain and distribution of Permian crude oil to the world.”
Read the article online at: https://www.worldpipelines.com/business-news/18102018/jupitermlp-receives-construction-funding-for-permian-to-gulf-coast-crude-oil-pipeline/