EPIC, BP sign agreement on Permian, Eagle Ford NGL pipeline

By Patrick C. Miller | October 09, 2017

San Antonio-based EPIC Y Grade Pipeline LP has signed an agreement with BP Energy Co. to anchor a new 650-mile natural gas liquids (NGL) pipeline linking producers’ reserves in the Permian and Eagle Ford basins to Gulf Coast refiners.

Known as EPIC NGL Pipeline, the line will link NGL reserves to refiners, petrochemical companies and export markets by providing producers with new options for takeaway and downstream players with an alternative source of feedstocks. With right-of-way acquisition and construction already begun alongside its sister project—the EPIC Crude Pipeline—the EPIC NGL Pipeline’s initial phase will be in-service in early 2018 and fully complete in 2019.

The EPIC NGL Pipeline will have throughput capacity of at least 220,000 barrels per day with multiple origin points in the Delaware and Midland basins. Destinations will include interconnects near Orla, Benedum and Corpus Christi, Texas, where EPIC’s affiliate plans to build a fractionation complex to accommodate the pipeline’s volume. In the fourth quarter of 2017, EPIC will conduct a FERC open season, when interested shippers will have an opportunity to secure firm capacity on the EPIC NGL Pipeline.

EPIC Y Grade Pipeline LP is a subsidiary of EPIC Y Grade Services LP and EPIC Midstream Holdings LP. EPIC is actively acquiring rights of way, and in some cases, multi-line rights will be pursued to accommodate both EPIC’s NGL and crude oil projects.

“We are delighted to collaborate with BP, which brings to this project global commercial expertise for both NGLs and purity products,” said Phil Mezey, EPIC’s CEO. “We look forward to providing a straight-forward, independent solution to shippers’ NGL marketing and transportation needs.”

Orlando Alvarez, BP Energy’s president and CEO, said, “BP is excited to extend its producer services reach into the prolific Delaware and Midland basins, while at the same time serving the growing needs of the petrochemical and refining sectors along the U.S. Gulf Coast.”

The EPIC Crude Pipeline is a 700-mile line providing an initial 550,000 barrels per day of capacity from the Permian and Eagle Ford basins to both refining and export markets in and around Corpus Christi. Nearing completion of its first open season, work on the EPIC Crude Pipeline has begun alongside the EPIC NGL Pipeline.