Stitches – Piece by Piece, Permian Express Has Evolved Into a Midstream Standout for Energy Transfer

Energy Transfer stitched together its Permian Express system in stages over multiple years — first reversing and repurposing existing crude oil pipes, then building new capacity — and it’s now a standout in the company’s midstream portfolio, able to carry 600 Mb/d of crude oil from the Permian Basin to Nederland, TX, with multiple receipt and delivery points. In today’s RBN blog, we’ll look at the Permian Express system and how it fits into Energy Transfer’s broader midstream strategy.

This is the latest in our series on crude oil pipelines exiting the Permian Basin. In Bustin’ Out, we discussed the EPIC Crude Pipeline, which has been operating at full capacity. Then, we told the story of Gray Oak Pipeline in Movin' On Up and the Cactus I and II pipelines in Can’t Hold Back. All four travel to Corpus Christi. We recently wrapped up our Permian-to-Houston series with a new Drill Down Report, West Texas Highway, where we detailed how Houston is competing head-to-head with the Corpus Christi area to attract Permian barrels. 

There are only two pipelines that make the long trip from the Permian to Nederland, both owned by Energy Transfer: West Texas Gulf, the subject of our most recent blog on the subject, and Permian Express, which we’ll discuss today. These two lines boast a combined capacity of nearly 1 MMb/d to Nederland, a small city about 10 miles southeast of Beaumont. Beaumont and Nederland are in an industrial corridor in southeast Texas known as the Golden Triangle and are often referred to as a single market.

Nederland receives considerably less Permian crude than Corpus Christi and Houston because its primary role is feeding nearby refineries in Port Arthur and Beaumont, including facilities owned by ExxonMobil and TotalEnergies. In contrast, Houston and Corpus Christi are export-driven hubs that together handle about 75% of Permian output. Through mid-year 2025, roughly 2.45 MMb/d of Permian crude flowed to Corpus Christi and 2.44 MMb/d headed to Houston, according to RBN’s Crude Oil Permian report, with only about 860 Mb/d destined for Nederland.

Early flows to Nederland primarily supplied refinery demand, but after the ban on most U.S. crude exports was lifted in 2015, volumes also began supporting export movements. In October, crude export loadings in the Beaumont/Nederland area averaged about 230-250 Mb/d, while Houston consistently exports more than 1 MMb/d and Corpus Christi pushes above 2 MMb/d, according to RBN’s Crude Voyager. While crude export volumes from Nederland are far smaller than those from Houston or Corpus Christi, Permian Express’s connectivity is vital to Energy Transfer’s strategy (more on that below). 

The Permian Express pipeline system is owned by Permian Express Partners LLC, an 85/15 joint venture of Sunoco Logistics Partners and ExxonMobil Pipeline Co. that was formed in 2016. As for the ownership of Sunoco Logistics Partners, that’s a little complicated. In 2012, Energy Transfer Partners (ETP) bought Sunoco Inc., which was the parent company of Sunoco Logistics. After the purchase, Sunoco Logistics continued to operate separately under its own name. Then in 2017, Sunoco Logistics turned around and acquired its former parent, Energy Transfer Partners. The two companies merged and then took on the Energy Transfer name and combined their pipeline systems into a single network. Today, Energy Transfer owns 85% of Permian Express, while ExxonMobil retains its 15% stake under the original joint operating agreement.