2 shale pipeline updates show possibilities for Bakken, Permian

By Luke Geiver | February 04, 2019

The push to build more shale oil transport pipelines across the country’s largest plays isn’t slowing down. In January, multiple projects were announced or updated, including a light oil pipeline that could help Bakken producers move crude through Cushing before a final destination near Houston.

Magellan Midstream Partners LP and Navigator Energy Services extended an open season on a proposed Voyager pipeline designed to move crude from the Rockies and Midcontinent through Cushing and onto the Houston area. Magellan owns 50 percent of Seabrook Logistics LLC, a terminal in the area that provides shale oil export options.

If built, the pipeline would move 300,000 barrels per day. According to Magellan, there is already significant interest from shippers, particularly those reaching Voyager from connecting carriers.

To help move crude from West Texas to export markets, ExxonMobil, Plains All-American Pipeline LP and Lotus Midstream LLC has formed the Wink to Webster Pipeline LLC joint venture. The new JV will be able to move 1 million barrels of oil per day from West Texas to the Texas Gulf Coast by 2021.

Plains will lead project construction on behalf of the JV and has already initiated pre-construction activities. The JV anticipates the project will generate more than 3,100 construction jobs. Priority will be placed on utilizing existing pipeline corridors and advanced construction techniques to help limit community and environmental impacts.