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EPIC to begin crude oil service on its NGL pipeline

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World Pipelines,

EPIC Midstream Holdings, LP (EPIC) has announced that it has obtained all necessary and required approvals for its subsidiary EPIC Crude Oil Pipeline, through a lease arrangement, to begin crude oil service on a portion of the EPIC NGL Pipeline owned by EPIC Y Grade Pipeline, LP, a subsidiary of EPIC Y Grade Services, LP, once construction of the pipeline is completed in 3Q19.

Because of high customer demand for crude oil transportation, EPIC made the decision to utilise the third and final phase of its EPIC NGL Pipeline from Crane, Texas to Corpus Christi, Texas for crude oil service while the EPIC Crude Oil Pipeline and EPIC NGL fractionator remains under construction. The EPIC NGL Pipeline will convert back to NGL Service at completion of the EPIC Crude Oil Pipeline by January 2020.

The portion of the NGL line being placed into crude service will originate in Crane with an additional injection point in Wink, TX and will have multiple terminal and refinery connections in Corpus Christi and the Ingleside, Texas. The 24 in. NGL line will have a capacity of 400 000 bpd for its interim crude service. The construction of the final phase of the EPIC NGL Pipeline is progressing on time with three contractors working on the project over five spreads of the pipeline path.

Subject to FERC approval, EPIC Crude Oil Pipeline intends to offer this early service under a tariff to be filed with the FERC and pursuant to contracts executed with certain shippers following the close of open seasons for Committed Shipper services on the EPIC Crude Oil Pipeline. Included among these Committed Shippers are Noble Energy Inc., Apache Corporation, Diamondback Energy, and others.

In addition to offering early crude service to its shippers, EPIC has closed the second open season on the EPIC Crude Oil Pipeline.

Because of its commercial success, EPIC will upsize its pipeline from a 24 in. line to a 30 in. line, expanding its Permian Basin capacity to approximately 600 000 bpd. With the installation of additional pumps and storage, EPIC can increase the 30 in. capacity to approximately 900 000 bpd.

The EPIC Crude Oil Pipeline will run side-by-side with the EPIC NGL Pipeline with the crude line expected to be completed by January 2020. The 30 in. pipe has been ordered from two steel mills and is expected to start arriving in early 2019. The same construction crews from the EPIC NGL Pipeline will be utilised enabling significant synergies to the construction timeline. All major equipment and pumps are currently on hand.

“Given our recent commercial success and subsequent upsizing of the pipeline, we remain responsive to growing demand for crude oil transportation from the Permian Basin.” said Phillip Mezey, Chief Executive Officer of EPIC. “We are proud to be able to offer an interim solution for our customers, while we continue to build out the EPIC Crude Oil Pipeline to service this region.”

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US pipeline news Crude oil pipeline news