The new, large-diameter crude oil pipelines coming online between the Permian Basin and the Gulf Coast grab all the headlines. They wouldn’t be nearly as valuable to producers, however, if it weren’t for a number of other, smaller projects being developed in West Texas to transport large volumes of crude from major gathering systems and storage hubs to these new takeaway pipelines. A case in point is Lotus Midstream’s recently unveiled Augustus Pipeline project, which will use a combination of new and existing pipe to initially transport up to 150 Mb/d of West Texas Intermediate (WTI), West Texas Light (WTL) and West Texas Sour (WTS) from Midland to Crane. When Augustus starts flowing late this year, crude delivered to the Crane hub could flow into the Longhorn Pipeline to Houston, or maybe the EPIC Crude or Gray Oak pipelines to Corpus Christi. Today, we discuss Lotus’s planned Midland-to-Crane project, and its significance for Midland Basin producers and the pipe’s owner/developer.
One Step Closer – Augustus Crude Pipeline Advances Lotus Midstream’s Broader Permian Plan
