EPIC Secures Strategic Partnerships for Crude Oil Pipeline
Apache Corporation and Noble Energy have committed to anchor the EPIC Crude Oil Pipeline, which will run side-by-side with the EPIC NGL Pipeline for 730 miles from southeastern New Mexico to Corpus Christi, Texas. The pipeline will have an initial total capacity of 590,000 bpd, including 440,000 bpd from the Permian Basin and 150,000 bpd from the Eagle Ford shale. Apache and Noble Energy have secured 75,000 bpd and 100 bpd of firm capacity, respectively.
In addition, EPIC is engaged in ongoing commercial negotiations representing at least 500,000 bpd in potential volume commitments for the pipeline. Pending the final result of the commercial process, the EPIC Crude Oil Pipeline may be expanded to a 30-inch line, increasing Permian Basin capacity from 440,000 bpd to 675,000 bpd.
As part of their strategic partnerships, Apache will have an option to acquire a 15 percent interest in the pipeline, with Noble having an option to acquire a 30 percent interest, as well as a 15 percent interest in the EPIC NGL Pipeline. All options expire in the first quarter of 2019.
The EPIC Crude Oil Pipeline will extend from Orla, Texas to the Port of Corpus Christi, Texas. The project includes terminals in Orla, Pecos, Saragosa, Crane, Wink, Midland, Helena and Gardendale, with Port of Corpus Christi connectivity and export access. Right of way is 100 percent secured for the first two phases of the system and onstruction is expected to commence in the fourth quarter of 2018. The pipeline expected to be in service in the second half of 2019.
The EPIC NGL Pipeline has signed definitive agreements with BP Energy Company to anchor the pipeline and has also entered into a strategic arrangement with Salt Creek Midstream. Phase one of project is currently in operation, and extends from DLK Black River Midstream’s processing plant in Eddy County, N.M. to Delaware Basin Midstream’s terminal in Orla County, Texas. Phase two, which will run from Delaware Basin Midstream's terminal in Orla County to Benedum, Texas, is currently under construction with an expected in-service date of June 2018. Phase three, which will run from Benedum to Corpus Christi, is expected to be in service by the second half of 2019.
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