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Texas midstream company gets funding to build Permian-to-Gulf Coast crude pipe

Privately held midstream company JupiterMLP LLC secured funding from Spinel Investment Co. LLC's energy-focused affiliate Charon System Advisors for the construction of a 1-million-barrel-per-day crude oil pipeline from the Permian Basin to the Port of Brownsville, Texas.

The Jupiter pipeline would have origination points near Midland, Pecos and Crane in Texas, and off-take points near Three Rivers, Texas, according to an Oct. 17 news release. It would also be the only pipeline to have access to the Houston, Corpus Christi and Brownsville deep water ports. The pipeline would also be able to access a loading facility for very large crude carriers.

Charon's investment in the project followed Jupiter's announcement that it had received all governmental and regulatory permits to load and unload vessels of up to 65,000 deadweight tons at the Jupiter crude export terminal. The company also previously acquired permits to build over 2.8 million barrels of storage in Brownsville and to expand its storage capacity to more than 6 MMbbl.

Jupiter is in the process of obtaining a permit for a new processing facility with 170,000 bbl per day of capacity, designed to process light U.S. shale crude into gasoline and ultralow sulfur diesel.

As the company already acquired firm commitments for the pipeline, Jupiter plans to launch an open season for the remaining capacity in November, said Jupiter Pipeline LLC President Albert Johnson. The Jupiter pipeline is expected to be operational in the late third quarter of 2020.

JupiterMLP provides logistics and off-take services to crude oil producers and gas plants, connecting Permian Basin production to Gulf Coast markets.