Exxon, Plains to partner on Permian pipeline project

|About: Plains All American Pipelin... (PAA)|By:, SA News Editor

Exxon Mobil (XOM -0.4%) says it plans to create a joint venture with Plains All American Pipeline (PAA +2%) to construct a multibillion-dollar pipeline to carry oil and condensate from the Permian Basin to the Texas Gulf Coast.

XOM earlier this year said it planned to triple its oil and gas production in the Permian by 2025 while also spending more than $2B on transportation and terminal upgrades in west Texas, including expanding its crude oil terminal in Wink; the JV pipeline with PAA would originate in Wink.

PAA and Magellan Midstream Partners recently expanded their BridgeTex oil pipeline, which has served as the major artery from west Texas to the Houston region, but Permian oil production is at a record high and the lack of pipelines has created bottlenecks.