Epic Midstream Holdings LP has received sufficient customer interest to sanction its proposed 730-mile crude pipeline between the Permian basin and Corpus Christi based on volume commitments and acreage dedications.
The pipeline crosses Texas between Orla and the Port of Corpus Christi with capacity up to 590,000 b/d. It includes terminals in Orla, Pecos, Crane, Wink, Midland, Helena, and Gardendale.
Epic is laying the crude pipeline, expected to be in service in 2019, alongside its previously announced NGL Pipeline System, currently under construction (OGJ Online, Sept. 29, 2017). Right-of-way acquisition for the crude line began in October after the Epic NGL project was begun.
Acreage-dedication shippers for the crude project include Noble Energy Inc., which is finalizing agreements with Epic to dedicate substantially all its gross acre position in Reeves County up to 75,000 b/d. Epic says it is in advanced discussions with other Permian basin producers to secure acreage dedications on similar terms. Another company has made a nonacreage volume commitment of 75,000 b/d.
Noble Energy and Epic are finalizing terms of a strategic relationship that will include an option to contribute equity in exchange for an ownership stake in the crude pipeline. Noble would also receive an option to participate in the Epic NGL pipeline. The options, which include up to 30% ownership in the crude pipeline and up to 15% ownership in the NGL pipeline, expire in January of 2019 and can be exercised through Noble Energy or its subsidiary, Noble Midstream Partners LP.