JupiterMLP to build 1 MMbpd Permian-to-Gulf Coast oil pipeline

HOUSTON -- JupiterMLP has secured funding from Charon System Advisors to build a 1 MMbpd oil pipeline from the Permian basin to the Port of Brownsville, Texas.

Expected to be operational in late third quarter of 2020 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 deep water 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 MMbbl of storage in Brownsville and has additional permits on file to increase its storage footprint to more than 6 MMbbl, of the potential 10 MMbbl 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 U.S. shale crude into on-spec U.S. gasoline and ultralow sulphur 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."