American midstream company JupiterMLP has secured a funding commitment from Charon System Advisors for the construction of the 1,094km, 1,000,000bpd capacity Jupiter Pipeline from the Permian Basin to the Port of Brownsville, Texas.
Image: Jupiter secures funding commitment from Charon for crude oil pipeline. Photo: courtesy of supakitmod/FreeDigitalPhotos.net.
Jupiter, which provides logistics and offtake solutions to crude oil producers and gas plants, has already completed the engineering, design, and right-of-way planning for the pipeline, which is expected to be operational in the third quarter of 2020.
The pipeline will have origination points near Midland, Pecos and Crane, Texas, and offtake points near Three Rivers, Texas.
The company is also establishing a crude upgrading, processing and export terminal capable of loading VLCCs on 270 acres of land located in the Port of Brownsville, Texas.
Jupiter Pipeline, the only pipeline from the Permian Basin that can access all three deepwater ports in Texas (Houston, Corpus Christi and Brownsville), will have direct access to a fully capable VLCC loading facility.
In May, Jupiter secured 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.
The company has already secured permission to construct more than 2.8 million barrels of storage in Brownsville. It has also sought additional permits to increase its storage footprint to more than six million barrels, of approximately 10 million barrels of storage capacity.
Jupiter Pipeline president Albert Johnson said: “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.”
Jupiter is also in the final stages of securing a permit to construct a 170,000bpd processing facility, which has been designed to process light US Shale crude into on-spec US gasoline and ultralow sulphur diesel.
Charon partner Adrayll Askew said: “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.”