EPIC Midstream has formed partnerships with Apache and Noble Energy for a planned crude oil pipeline in the US.
Set to come online in the second half of 2019, the pipeline will be built alongside the EPIC natural gas liquids (NGL) pipeline, which runs for 730 miles from New Mexico to Texas.
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With an initial aggregate capacity of 590,000 barrels of oil per day (MBbl/d), the crude pipeline will transport 440MBbl/d from the Permian Basin and 150MBbl/d from the Eagle Ford, New Mexico, to the Port of Corpus Christi, Texas.
Apache midstream and marketing senior vice-president Brian Freed said: “As one of the largest acreage holders in the Permian Basin, Apache’s participation in the EPIC Crude Oil Pipeline helps to ensure takeaway capacity for our production from the region.
“The partnership enhances our long-term operational flexibility and market optionality in our Delaware and Midland Basin focus areas.”
Under the deal, Noble Energy will be offered 100MBbl/d of capacity for a period of ten years, while Apache will have 75MBbl/d.
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By GlobalDataNoble Energy operations executive vice-president Gary Willingham said: “Our strategic agreement with EPIC provides long-term flow assurance for our rapidly growing Delaware Basin oil volumes.
“With this agreement, we have further diversified our onshore marketing outlets with access to the Gulf Coast and global markets, at an attractive pipeline transport cost.”
The company has dedicated its acreage position in the Delaware Basin to the EPIC crude pipeline.
Under the partnership, Apache will have an option to buy up to 15% equity in the pipeline, while Noble has secured options to acquire up to 30% equity in the crude pipeline and up to 15% of the EPIC NGL pipeline.
