Plains All American Pipeline, L.P.’s joint venture with ExxonMobil and Lotus Midstream, LLC.


Vinson & Elkins advised Plains All American Pipeline, L.P. on the transaction

ExxonMobil, Plains All American Pipeline, L.P. (Plains), and Lotus Midstream, LLC have formed the Wink to Webster Pipeline LLC Joint Venture (JV) and have ordered nearly 650 miles of domestically sourced 36-inch-diameter line pipe. The new common-carrier pipeline system will provide more than 1 million barrels per day of crude oil and condensate capacity and will be constructed from the Permian Basin in West Texas to the Texas Gulf Coast.

The Wink to Webster Texas-based pipeline system will have origin points at Wink and Midland to multiple locations near Houston, including Webster and Baytown, with connectivity to Texas City and Beaumont. The project is underpinned by a significant volume of long-term commitments and is targeted to commence operations in the first half of 2021.

Plains will lead project construction on behalf of the JV and has already initiated pre-construction activities. The JV anticipates the project will generate more than 3,100 construction jobs. Priority will be placed on utilizing existing pipeline corridors and advanced construction techniques to help limit community and environmental impacts.

The Wink to Webster Pipeline will provide safe, reliable and cost-effective transport for ExxonMobil and other Permian producers to market destinations in Texas. The project will be supported by new operational storage capacity at the origin points to facilitate the segregation of multiple crude qualities prior to shipment. Once online, the project will play a critical role in supporting growing production in one of the world’s most prolific crude oil basins.

Vinson & Elkins advised Plains All American Pipeline, L.P. with a team including Doug Bland (Picture), Stephanie Coco, Caroline Kuehn, Ben Glass and Kara Chung, Todd Way, Gary Huffman, Joe Garcia, Julia Pashin, Megan James and Pat Mizell.

Involved fees earner: Douglas Bland – Vinson & Elkins LLP; Kara Chung – Vinson & Elkins LLP; Stephanie Coco – Vinson & Elkins LLP; Joe Garcia Jr. – Vinson & Elkins LLP; Gary Huffman – Vinson & Elkins LLP; Megan James – Vinson & Elkins LLP; Caroline Kuehn – Vinson & Elkins LLP; Patrick Mizell – Vinson & Elkins LLP; Julia Pashin – Vinson & Elkins LLP; Todd Way – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Plains All American Pipeline L.P.;

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Author: Ambrogio Visconti