ExxonMobil and Sentinel Team Up for Houston JV
Sentinel Midstream Texas LLC has announced a new joint venture (JV) with ExxonMobil Pipeline Company serving the Houston energy market.
The JV, dubbed Enercoast Midstream LLC, provides the critical last-mile link for Permian, Gulf of Mexico and other barrels in the Houston crude oil market, Sentinel noted in a statement posted on its website. As part of the JV, ExxonMobil will contribute two existing crude oil pipelines into Enercoast; a 16-inch pipeline originating at Webster Terminal, with delivery points at ExxonMobil’s Baytown Refinery and Seabrook export terminal, and a 20-inch crude pipeline with access to Moore Road station.
Sentinel contributed cash for a majority equity position and will be the operator for the JV, the company revealed. As operator, Sentinel brings an experienced, results-oriented management team with a proven track record of maximizing value while maintaining its core values of safe, reliable operations and environmental stewardship, according to a company statement. The company said it will undertake efforts to commercialize capacity on Enercoast’s system while pursuing opportunities to grow its operating footprint by building or acquiring new pipelines.
“We are extremely pleased to establish a joint venture with ExxonMobil to maximize the potential of Enercoast,” Jeff Ballard, the president and chief executive officer of Sentinel, said in a company statement. “Sentinel looks forward to the opportunity to serve ExxonMobil and other shippers in the Houston market,” Ballard added in the statement.
Houston is the fourth most populous city in the U.S. - with an estimated July 2018 population of 2,325,502 - and the largest in the southern U.S. and Texas, the city of Houston website highlights. Houston is expected to become the third most populous U.S. city during the second half of the 2020s, according to the site.
Sentinel, which is headquartered in Richardson, Texas, offers midstream solutions for crude oil transportation, storage and terminalling. The company is backed by Cresta Fund Management, a middle-market infrastructure firm focused on investing in hard assets that transport, store, process or sequester basic materials.
ExxonMobil Pipeline Company transports crude oil, refined products, liquefied petroleum gases, natural gas liquids and chemical feedstocks through more than 4,000 miles of pipeline and facilities in California, Florida, Illinois, Indiana, Louisiana, Massachusetts, Montana, Rhode Island and Texas, its website shows.
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