Funding Allows JupiterMLP to Advance Permian-to-Gulf Coast Crude Oil Pipeline

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JupiterMLP LLC will proceed with plans to build a 1 million-barrel per day (bpd) pipeline from the Permian Basin to the Port of Brownsville, Texas.

JupiterMLP is a privately held midstream company that provides crude oil producers and gas plants with logistics and offtake solutions. The company announced Oct. 17 that it secured sufficient funding commitment from Charon System Advisors to build the Jupiter Pipeline.

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. (VLCC stands for very large crude carrier.)

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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 million barrels of storage in Brownsville and has additional permits on file to increase its storage footprint to more than 6 million barrels, of the potential 10 million barrels 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.

“We are excited about our investment in the Jupiter pipeline along with Jupiter management and our investment partners,” said Adrayll Askew, partner of Charon. “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.”

With funding and firm shipping commitments in place, Jupiter Pipeline LLC president Albert Johnson said the company would be holding an open season for the remaining capacity in November.

“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,” said Jupiter CEO Tom Ramsey, “we are executing on our long-term, global strategy of connecting the ‘Wellhead to the World.’”

Jupiter also announced some management team changes. John Calce, founder and president of JupiterMLP, was appointed chairman of the board of directors, effective Oct. 1. Albert Johnson, who joined Jupiter in March 2018 as executive vice president of business development was appointed president of Jupiter Pipeline, effective Oct. 1.

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