When Lotus Midstream formed less than two years ago, founders Mike Prince and Emily Baker went straight to work leveraging their heavyweight oil and gas relationships. Working together at Sunoco Logistics/Energy Transfer, the two brought complementary talents and vision to their new midstream business and quickly earned financial backing from Encap Flatrock.
Based in Sugar Land, Texas, Lotus Midstream is an independent energy company focused on the development of midstream infrastructure and services necessary to transport crude oil and condensate from the wellhead to market. Lotus owns the Centurion Pipeline System, a large-scale, integrated network of approximately 3,000 miles of crude oil gathering and transportation pipelines that extends from southeast New Mexico across the Permian Basin of West Texas to Cushing, Oklahoma. Lotus Midstream is backed by EnCap Flatrock Midstream.
RMR today is following the latest news from Sugar Land, Texas-based Lotus, which just announced a binding open season for the proposed Augustus Pipeline scheduled to go online by end of next year. The Augustus will run from the company’s Centurion Terminal in Midland to Crane, Texas, where it will connect to multiple long-haul pipelines.
For a young midstream player, Lotus has blossomed into quite the success story. Eight months into business, it acquired the Centurion system from Houston-based Occidental. The Centurion is a large-scale midstream network that includes 3,000 miles of crude oil gathering and transportation pipelines that extend from southeast New Mexico across the Permian in West Texas to the Cushing Hub in Okla. Additional assets include more than 125 truck stations and crude oil storage tanks in both Midland and Cushing with a combined storage capacity of 7 million Bbls.
But that’s not all Lotus achieved in short order. One month after purchasing Centurion, the company joined forces with Exxon and Plains All American in a joint venture to build the Wink-to-Webster Pipeline capable of transporting 1 million BPD of crude. The pipeline is slated to begin service in the first half of 2021.
For an upstart building its midstream portfolio, that’s quite the bouquet. What do you think?