The consolidation spree in the Permian basin of west Texas and south-eastern New Mexico has reached into the midstream sector, with US pipeline giant Plains All-American agreeing to a joint venture with privately-held Oryx Midstream Holdings.

The cashless transaction will include a 65% ownership stake for Plains and 35% for Oryx. The joint venture will allow for Plains to scrap plans for the construction of additional pipeline systems in the Permian and the use of Oryx’s existing pipelines instead.