Epic Y Grade Pipeline LP, a subsidiary of Epic Y Grade Services LP and Epic Midstream Holdings LP, has agreed with BP Energy Co., a subsidiary of BP PLC, to anchor a 650-mile NGL pipeline that will link the Permian and Eagle Ford regions to Gulf Coast refiners, petrochemical companies, and export markets.
Construction already has begun on the Epic NGL Pipeline, which will have throughput capacity of at least 220,000 b/d with multiple origin points in the Delaware and Midland basins. Destinations will include interconnects near Orla, Benedum, and Corpus Christi in Texas, where Epic’s affiliate plans to build a complex with multiple 100,000-b/d fractionators to accommodate the pipeline’s volume.
Epic will conduct an open season for the pipeline in the fourth quarter. It plans to have the initial phase of the pipeline in-service in early 2018 and fully completed in 2019.
The pipeline will run side-by-side with the previously announced 700-mile, 550,000-b/d Epic Crude Oil Pipeline for most of the route. Epic is actively acquiring rights of way, and in some cases, multiline rights will be pursued to accommodate both NGL and crude oil projects.
The Epic NGL Pipeline has secured a capital commitment from funds managed by global alternative asset manager Ares Management LP.
Epic’s predecessors, TexStar Midstream Logistics LP and TexStar Midstream Services LP, owned and operated oil and gas midstream infrastructure throughout South Texas.