Chris Ramirez | Corpus Christi Caller Times | August 20, 2019
EPIC Midstream has started shipping crude through its new Permian Basin pipeline to the Gulf Coast.
Its subsidiary EPIC Crude Holdings, LP announced Monday "interim crude service" has begun on its massive EPIC Y-Grade pipeline. Crude will be delivered from Crane, near Odessa, to terminals in Corpus Christi and Ingleside.
EPIC's massive line will be able to deliver up to 400,000 barrels of oil each day.
“Providing interim service adds much-needed takeaway capacity in the Permian Basin, which supports continued development and highlights the strategic value of our assets,” company CEO Phillip Mezey said.
San Antonio-based EPIC is the company behind an ambitious effort to link the crude-rich Permian Basin with the Coastal Bend with hundreds of miles of pipeline.
EPIC is in the final stages of building a crude export dock in Corpus Christi that will be capable of loading Suezmax tankers that carry up to 1 million barrels. Company officials expect that dock to be ready for service by the end of the year.
A second dock is slated to open by the second quarter of 2020.
Company officials said in a statement construction of EPIC’s 30-inch permanent crude line is about half completed and remains "on budget." It is expected to be complete in January, and have a capacity to move roughly 600,000 barrels daily.
EPIC will return its Y-Grade Pipeline to moving natural gas liquids. That transition is expected to wrap up by the first quarter of 2020, when crude operations are expected to get underway. EPIC decided in November 2017 to convert the NGL line to transport crude to offset climbing demands for oil.
Last week, two company affiliates, EPIC Y-Grade Pipeline LP and EPIC Olefins LP, unveiled plans to build more than 130 miles of 12-inch ethane and ethylene pipeline. That effort is expected to support an ethane steam cracker that is being built near Portland by Gulf Coast Growth Ventures.
Gulf Coast Growth Ventures is a joint venture of ExxonMobil and the Riyadh-based Saudi Arabia Basic Industries Corp. that promises to create 6,000 jobs for the region.
Both pipelines are expected to be completed by the third quarter of 2020.
“These strategic infrastructure investments by both of our companies will continue to drive future investment in the greater Corpus Christi area," Mezey said.
The brand name "EPIC" is an acronym that stands for Eagle Ford, Permian, Ingleside and Corpus.
Chris Ramirez writes about energy, commerce and all things business.