Producers showing strong interest in pipeline capacity from Permian Basin to Port of Brownsville

Fuel Fix:
Dallas pipeline company Jupiter Energy Group has extended an open season to book capacity on a proposed pipeline to move crude oil from the Permian Basin of West Texas to the Port of Brownsville.

The company said it will continue to book capacity on its proposed Jupiter Pipeline though May 31.

Spanning 650 miles, the 36-inch-diameter crude oil pipeline with begins near the Permian Basin town of Crane, Texas and includes an input terminal in the Eagle Ford Shale town of Three Rivers before ending at the company's planned facility at the Port of Brownsville.

"We're very pleased with the results of the initial open season period for the Jupiter Pipeline," Jupiter Pipeline LLC President Albert Johnson said in a statement. "The supplemental period validates our belief that the interest for transportation commitments on the pipeline is as substantial as expected."

Deepwater Rivalry: Competing offshore oil export terminals proposed near Houston

In addition to moving crude oil to the Port of Brownsville, company officials said the Jupiter Pipeline will also have connections to move crude oil to export terminals at the Port of Corpus Christi and the Port of Houston.

Jupiter's long-term plans include building an offshore crude oil export terminal near the Port of Brownsville that will be capable of loading Very Large Crude Carriers, or VLCC tankers. Among the largest ships in the world, VLCC tankers can carry up to 2 million barrels of crude oil in a single shipment — making them attractive to exporters.
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There are still some regulatory hoops to jump through in order to start construction on the proposed pipeline but they need the market interests to start that process.  The anti-energy left has been opposing proposals for an LNG facility at the Port of Brownsville.  The Lower Rio Grande Valley could use the jobs created by the pipelines and export facilities.

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