US supermajor ExxonMobil has officially joined forces with Plains All American Pipeline and Lotus Midstream to build a 1 million barrels-per-day crude pipeline system from the Permian basin of western Texas to the US Gulf Coast.

The trio announced Wednesday that it has formed the Wink to Webster Pipeline joint venture to develop the pipeline, which is expected to begin operations in 2021.

Plains will lead project construction and has started pre-construction work. Priority will be placed on using existing pipeline corridors and "advanced construction techniques" to help limit impacts to the environment and communities, according to a release.

The JV has already ordered nearly 650 miles of domestically sourced 36-inch-diameter line pipe for the project.

The deal comes as Permian producers are grappling with midstream bottlenecks as prolific oil and gas production in the basin is outpacing takeaway capacity.

The pipeline would originate in Midland and Wink, Texas, where ExxonMobil acquired a 100,000 bpd crude terminal in 2017. Delivery points would be in Webster, Baytown and Beaumont, Texas.

ExxonMobil has pledged $2 billion of additional investment in Permian infrastructure and transportation, including an expansion of the Wink terminal and upgrades to existing facilities.

The JV expects the project will create more than 3100 construction jobs.