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EPIC Crude Oil Pipeline, Texas

  • Project Type

    Crude oil pipeline

  • Project Location

    Texas, US

  • Estimated Capacity

    Up to 590,000bopd

  • Length

    730 miles (1,175km)

  • Start of Construction

    Q4 2018

  • Start of Operation

    H2 2019

  • Developer and Operator

    EPIC

EPIC crude oil pipeline will extend from Orla, Reeves County, Texas, to the Port of Corpus Christi, Texas, US, to transport crude oil volumes from Delaware and Midland sub-basins of the Permian Basin in West Texas and the Eagle Ford basin in South Texas.

The 730 miles (1,175km)-long pipeline is being developed by EPIC, which was formed in 2017 to construct and operate midstream infrastructure in the Permian and Eagle Ford basins.

Epic crude oil pipeline is the second pipeline project to be undertaken by the company, after  the EPIC Natural Gas Liquids (NGL) pipeline, which is already partially commissioned with its last phase under construction.

The EPIC crude oil pipeline is expected to possess an initial capacity of up to 590,000 barrels of oil per day (bopd), comprising 440,000bod from the Permian Basin and 150,000bod from the Eagle Ford basin.

The construction of the crude oil pipeline is expected to in the fourth quarter of 2018, while operations are expected to begin in the second half of 2019.

EPIC crude oil pipeline details

The EPIC crude oil pipeline will run alongside the EPIC NGL pipeline and include terminals in Orla, Pecos, Crane, Wink, Saragosa, Midland, Helena and Gardendale, to receive crude oil delivery from Delaware, Midland and Eagle Ford basins.

The right of way for the first two phases of the pipeline has been successfully secured.

The first open season for the EPIC crude oil pipeline, concluded in July 2018, witnessed strategic partnership and primary shipping agreements totaling 425,000bod of volume commitment from the Permian Basin and 150,000bod from the Eagle Ford basin.

EPIC started the second open season for the crude pipeline in August 2018, encouraged by commercial interests it received in the first open season.

The pipeline diameter is expected to be upsized from the currently proposed 24in to 30in, based on the outcome of the second open season, expanding the pipeline’s Permian Basin capacity from 440,000bod to 675,000bod.

EPIC has decided to reserve at least 10% of the pipeline’s capacity for uncommitted shippers.

EPIC NGL pipeline details

The 700 miles (1,126km)-long EPIC NGL pipeline, with BP as its main anchor customer, will link the NGL reserves in the Permian and Eagle Ford basins to the export markets, petrochemical companies, and gulf coast refiners.

Construction of the EPIC NGL pipeline project started in December 2017. The first phase of the pipeline that stretches from DLK Black River Midstream to Delaware Basin was commissioned in April 2018.

The second phase starting from Delaware Basin Midstream to Benedum Phase was brought into operation in June 2018.

The last phase, running from Benedum to Corpus Christi, is expected to be commissioned by the second half of 2019.

Key players involved with the EPIC crude oil pipeline project

Noble Energy and Apache Corporation entered strategic agreements with EPIC, in May 2018, to anchor the EPIC crude oil pipeline for 100,000bopd and 75,000bopd capacities, respectively.

Noble Energy is entitled to buy 30% equity stake in the project, while Apache has the option to buy 15% equity stake.

Rattler Midstream, a subsidiary of Diamondback Energy, secured 50,000bopd capacity of the pipeline in July 2018 and is entitled to acquire up to 5% equity stake in the EPIC crude oil pipeline.

The Ares Management Private Equity Group manages funds for capital commitments for the project.

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