A subsidiary of Permian Basin shale driller Noble Energy Inc. closed its option to snap up a 30% stake in Epic Midstream Holdings LP's crude pipeline project, expanding the company's takeaway capacity in the production area.
Noble Midstream Partners LP contributed a catch-up payment of $104 million for the project at closing, according to a March 8 news release.
The 30-inch Epic crude pipeline would carry 590,000 barrels per day of crude from the Delaware Basin to the Gulf Coast, expandable to about 900,000 bbl/d with the addition of pumps and storage. The pipeline would be 45% owned by Epic Midstream, 15% owned by Apache Corp.'s Altus Midstream Co. and 10% owned by Diamondback Energy Inc.'s Rattler Midstream LP upon closing of the deals.
Previously, Noble Midstream exercised and closed its option for a 15% stake in Epic Midstream's 700-mile, 24-inch NGL pipeline, designed to transport about 440,000 bbl/d from the Permian Basin and Eagle Ford Shale to Gulf Coast refiners, petrochemical companies and export markets.