Sentinel Midstream agrees ExxonMobil joint venture

ExxonMobil contributed two existing crude oil pipelines into Enercoast: a 16-inch crude pipeline originating at St. James with a delivery point at Anchorage, and a 16-inch crude pipeline originating at Raceland and St. James with a delivery point at Anchorage. With delivery points at Anchorage, these pipelines provided connectivity to the ExxonMobil Baton Rouge, Placid, and Delek Krotz Springs refineries. Sentinel contributed cash for a majority equity position in and will be the operator of the joint venture.

As the operator, Sentinel brought an experienced, results-oriented management team with a proven track record of maximising value while maintaining its core values of safe, reliable operations and environmental stewardship. Sentinel will undertake efforts to commercialise capacity on Enercoast's system while pursuing opportunities to grow its operating footprint in Louisiana.

"We are extremely pleased to continue the growth of our joint venture with ExxonMobil to maximise the potential of Enercoast in the critical Louisiana crude oil market," said Jeff Ballard, President and CEO of Sentinel. "ExxonMobil and Sentinel's decision to form a second joint venture, in a new geographic area, speaks to the growth of our relationship and the value each party places on it."

Enercoast began serving shippers as a common-carrier pipeline on 1 December 2023. Enercoast's tariffs are available on Sentinel's website.

Sentinel was represented by Willkie Farr & Gallagher LLP and ExxonMobil was represented by Troutman Pepper Hamilton Sanders LLP.

Read the article online at: https://www.tanksterminals.com/terminals/06122023/sentinel-midstream-has-announced-exxonmobil-joint-venture/