Noble Midstream Partners LP has exercised its option for a 30% equity stake in the Epic Crude Oil Pipeline project and a 15% equity stake in the Epic NGL pipeline while Altus Midstream Co., through a subsidiary, and Rattler Midstream LP, a subsidiary of Diamondback Energy Inc., exercised options for 15% and 10%, respectively, in the Epic crude line.
The Epic crude line and the Epic NGL line will transport crude and NGL across Texas for delivery into Corpus Christi, Tex. Construction on the crude line begins this month with an expected in-service date in this year’s second half. The NGL line will extend side-by-side for most of the route with the crude line. Phase 1 was completed and NGL product was introduced to the pipeline in March 2018 (OGJ Online, Apr. 3, 2018). Phase 2 was completed in June 2018 (OGJ Online, June 27, 2018). Phase 3 is expected to be complete in this year’s fourth quarter.
The pro forma ownership for the crude pipeline is Epic 45%, Noble Midstream 30%, Altus Midstream 15%, and Rattler Midstream 10%. Ownership in the NGL pipeline is Epic 75%, Noble Midstream 15%, and Salt Creek Midstream 10%.
Closing of the equity interest in each project is anticipated in February and subject to certain conditions.