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Epic Midstream to use final phase of Permian NGL pipe project for crude service

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Epic Midstream to use final phase of Permian NGL pipe project for crude service

Due to high customer demand, Epic Midstream Holdings LP is temporarily using a portion of its Epic NGL pipeline to transport crude oil across the Permian Basin.

Epic Midstream received all the approvals it needs to begin service on the third and final phase of the Epic NGL pipeline upon project completion in the third quarter of 2019. The partnership's crude oil pipeline subsidiary would use the segment running from Crane, Texas, to Corpus Christi, Texas, to deliver crude under a lease arrangement while the crude oil pipeline and NGL fractionator components of the project are under construction, according to an Oct. 5 news release.

Epic would convert the pipeline back to NGL service when the crude oil pipeline is completed in January 2020.

The NGL pipeline's third phase has an additional injection point in Wink, Texas, and terminal and refinery connections in Corpus Christi and Ingleside, Texas. It would be capable of transporting 400,000 barrels of oil per day during its interim crude service. The NGL pipeline and the crude oil pipeline would run side by side.

Epic intends to file a tariff with the Federal Energy Regulatory Commission for the early service. Shippers on the under-construction crude pipeline, which the NGL pipeline would serve temporarily, include Noble Energy Inc., Apache Corp. and Diamondback Energy Inc.

The commercial demand has also prompted Epic to upsize the 24-inch line to 30 inches, which would expand capacity to about 600,000 bbl/d. The addition of pumps and storage could also boost capacity to about 900,000 bbl/d.

Epic Midstream was established in 2017, with its operations focused in the Permian Basin and Eagle Ford Shale. The partnership is financially supported by capital from funds managed by the private equity group of Ares Management LP.