EPIC Oil Pipeline

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
Sub-articles:

Epic Oil Pipeline is an operating oil pipeline in the United States.[1]

Location

The pipeline would run from Orla, Texas, to Corpus Christi, Texas.[2][3]

Loading map...

Project details

  • Operator: EPIC Crude Pipeline, LP[4][5]
  • Owners: EPIC Midstream Holdings [45%]; Kinetik Holdings [27.5%]; Diamondback Energy [27.5%][6]
  • Parent company: Ares Management [45%]; Kinetik Holdings [27.5%]; Diamondback Energy [27.5%]
  • Capacity: 600,000 barrels per day (440,000 bpd from the Permian’s Midland Basin, and 150,000 Bpd from the Eagle Ford Shale)
  • Length: 1,175 kilometers (730 miles)[7]
  • Diameter: 30 inches[7]
  • Status: Operating[7]
  • Start year: 2020[7]
  • Financing: US$1.075 billion loan from undisclosed sources[8]; additional US$175 million debt financing from Goldman Sachs[9] and US$125 million debt financing from UBS[10]


Originally Noble Midstream Partners owned a 30% stake in the pipeline, but they were later acquired by Chevron.

Background

The US$2.3 billion Epic project is a 730-mile-long crude oil and condensate pipeline that runs from West Texas to Corpus Christi, Texas.[11] It has a maximum capacity of 440,000 bpd from the Permian’s Midland Basin, and 150,000 Bpd from the Eagle Ford Shale in South Texas.[12] In 2022, EPIC reported that the pipeline was operating at a capacity of 600,000 bpd.[13][14][15][16] It takes crude from points in Orla, Pecos, Crane and Midland in the West Texas Permian Basin and transports it to terminals in the Port of Corpus Christi and other drop-off points in the area.[1]

The pipeline owned by San Antonio-based TexStar Midstream Logistics, Connecticut-based Castleton Commodities International and Texas-based Ironwood Midstream Energy Partners. In March 2017 the companies were bidding out the first 200,000 barrels of pipeline capacity.[1]

EPIC was temporarily moving crude oil through its EPIC NGL Pipeline, a parallel-running 24-inch natural gas line while this permanent line was under construction. Upon completion of the oil pipeline, the parallel gas pipeline will revert back to transporting NGL.[17]

The pipeline began initial operations in August of 2019, as expected.[18] Construction was completed in January of 2020, and the pipeline is expected to reach full service by April 1, 2020.[17]

According to June 2020 data from the U.S. Energy Information Administration (EIA), "Construction of the 30-inch diameter crude pipeline was completed on February 26, 2020 and entered into full service on April 1, 2020. Crude will flow on the dedicated EPIC Crude pipeline at an initial capacity of 600,000 b/d (and the EPIC NGL Crane to Corpus Christi pipeline will convert to natural gas liquids service). Capacity will be expandable with additional pumping to 900,000 b/d. Remaining construction of the project is primarily focused on installing an additional 2.1 million barrels of operational storage, bringing total storage to 7.5 million barrels, as well as completing the East Dock that is expected to be operational in the second half of 2020 adding the capability of loading Suezmax vessels."[7]

In September 2024, a new ownership structure was announced.[6] Prior to this, Chevron owned some of the pipeline: EPIC Midstream Holdings [45%]; Chevron [30%]; Altus Midstream Company [15%]; Diamondback Energy [10%].[19] Altus Midstream merged with EagleClaw Midstream to become Kinetik Holdings in February 2022.[20][21]

Articles and resources

References

  1. 1.0 1.1 1.2 Epic Oil Pipeline, Fuel Fix, accessed September 2017
  2. National Energy and Petrochemical Map , FracTracker, February 28, 2020
  3. "EPIC CRD pipeline" (PDF). epicmid.com. 2021-01-19.{{cite web}}: CS1 maint: url-status (link)
  4. "EPIC CRUDE ANNOUNCES COMPLETION OF ITS 30" PERMANENT CRUDE OIL PIPELINE AND UPSIZE OF THE EXISITING TERM LOAN – EPICMID". Retrieved 2022-04-12.
  5. "Open season launched on EPIC Crude Pipeline". Tank Storage News America. Retrieved 2022-04-11.{{cite web}}: CS1 maint: url-status (link)
  6. 6.0 6.1 "https://www.reuters.com/markets/deals/diamondback-kinetik-buy-30-stake-epic-crude-pipeline-2024-09-24". {{cite web}}: External link in |title= (help)CS1 maint: url-status (link)
  7. 7.0 7.1 7.2 7.3 7.4 Petroleum & Other Liquids, Movements, Energy Information Administration, June 4, 2020
  8. "EPIC Crude Oil Pipeline (1,174.82KM)", IJGlobal, accessed Jul. 30, 2020
  9. "EPIC Crude Oil Pipeline (1,174.82KM) Additional Facility 2020", IJGlobal, accessed Jul. 30, 2020
  10. "EPIC Midstream Permian Basin & Eagle Ford Basin - Corpus Christi Y-Grade Crude Oil Pipeline", IJGlobal, accessed Aug. 18, 2020
  11. "EPIC commissions 30-inch crude pipeline", Midland Reporter Telegram, Feb. 29, 2020
  12. EPIC oil pipeline beginning Permian Basin service, Kallanish Energy, August 19, 2019
  13. "EPIC crude pipeline operating at 600,000 barrels of oil per day". PB Oil & Gas. 7 April 2022. Retrieved 9 March 2023.
  14. "EPIC Crude Delivers Record Volumes". Business Wire. 6 April 2022. Retrieved 9 March 2023.
  15. "EPIC Crude Terminal Added to the Leading International Crude Oil Pricing Benchmark". Business Wire. 14 November 2022. Retrieved 9 March 2023.
  16. "Epic Midstream". Oil Gas Leads. 13 April 2022. Retrieved 9 March 2023.{{cite web}}: CS1 maint: url-status (link)
  17. 17.0 17.1 Chris Ramirez, EPIC: Permian Basin-to-Corpus Christi crude pipeline is complete, Caller Times, Feb. 26, 2020
  18. Oil is flowing through new EPIC pipeline, Oklahoma Energy Today, August 19, 2019
  19. Asset Data, IJGlobal, accessed Aug. 27, 2020
  20. "Altus/EagleClaw/Kinetik". www.altusmidstream.com. Retrieved 2024-09-30.
  21. "EagleClaw Midstream & Altus Midstream Merger". Kinetik. Retrieved 2024-09-30.

Related GEM.wiki articles

External resources

External articles