11-11-2020

Easton Energy to purchase South Texas pipeline system

Easton Energy LLC, a Houston-based midstream company, today announced that it has executed an agreement to purchase the “South Texas Pipeline System” from ExxonMobil Pipeline Company, a wholly-owned subsidiary of Exxon Mobil Corporation. The South Texas Pipeline System comprises approximately 720 miles of pipeline running 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 of the Pipeline System, plus several surface facilities. The acquisition is expected to close early in 2021.

The Pipeline System holds a significant place in oil and gas exploration and production in south Texas, having been used over the years to transport a variety of commodities from crude oil to different natural gas liquids. Most recently, the Pipeline System has been in Refinery Grade Propylene service. Operated by ExxonMobil and its predecessors, the Pipeline System is considered to be a “best in class” asset which has benefited from ExxonMobil’s maintenance and operational integrity programs and its committed workforce.

The Pipeline System connects growing petrochemical markets in South Texas, Easton’s large salt dome storage position at Markham, TX and Easton’s distribution pipelines in the Houston Ship Channel and Mont Belvieu areas. Easton’s interconnected system will range from Corpus Christi to Houston, Mont Belvieu, Texas City and Lake Charles, Louisiana, all supported by rights to 50 million barrels of liquid hydrocarbon storage at Markham, TX. Easton anticipates offering pipeline transport optionality to a growing petrochemical customer base.

Easton President and CEO, Joel McComas stated, “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.”