US midstream company Easton Energy has bought the South Texas Pipeline System and several surface facilities from ExxonMobil Pipeline Company.
The approximately 1,160 km pipeline network runs from ExxonMobil’s Clear Lake and Katy gas plants at the northern end of the Pipeline System, to Energy Transfer’s King Ranch Gas Plant and the Port of Corpus Christi at the southern end. It will provide an important connection between Easton’s salt dome storage facility in Markham, Texas, its distribution pipelines in the Houston Ship Channel and Mont Belvieu areas, and growing petrochemical markets in south Texas. Easton says it will offer the option of pipeline transport to its growing petrochemical customer base.
The pipeline, considered a ‘best in class’ asset, has been used for a variety of products over the years, including crude oil, natural gas liquids, and most recently, refinery grade propylene.
‘We’re thankful for the opportunity to work with ExxonMobil on this transaction. I’m pleased with this addition to our pipeline portfolio which further allows Easton to provide safe and efficient transport of liquid hydrocarbons,’ says Easton president and CEO, Joel McComas.
The transaction is expected to be completed in early 2021.