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EPIC Announces Plans to Begin Interim Crude Oil Service on Its NGL Pipeline in Third Quarter of 2019

October 5, 2018

SAN ANTONIO--(BUSINESS WIRE)--Oct 5, 2018--EPIC Midstream Holdings, LP (EPIC) today announced that it has obtained all necessary and required approvals for its subsidiary EPIC Crude Oil Pipeline, through a lease arrangement, to begin crude oil service on a portion of the EPIC NGL Pipeline owned by EPIC Y Grade Pipeline, LP, a subsidiary of EPIC Y Grade Services, LP, once construction of the pipeline is completed in the third quarter of 2019.

Because of high customer demand for crude oil transportation, EPIC made the decision to utilize the third and final phase of its EPIC NGL Pipeline from Crane, Texas to Corpus Christi, Texas for crude oil service while the EPIC Crude Oil Pipeline and EPIC NGL fractionator remain under construction. The EPIC NGL Pipeline will convert back to NGL Service at completion of the EPIC Crude Oil Pipeline by January 2020.

The portion of the NGL line being placed into crude service will originate in Crane with an additional injection point in Wink, TX and will have multiple terminal and refinery connections in Corpus Christi and Ingleside, Texas. The 24-inch NGL line will have a capacity of 400 thousand barrels of oil per day (MBbl/d) for its interim crude service. The construction of the final phase of the EPIC NGL Pipeline is progressing on time with three contractors working on the project over five spreads of the pipeline path.

Subject to FERC approval, EPIC Crude Oil Pipeline intends to offer this early service under a tariff to be filed with the FERC and pursuant to contracts executed with certain shippers following the close of open seasons for Committed Shipper services on the EPIC Crude Oil Pipeline. Included among these Committed Shippers are Noble Energy Inc., Apache Corporation, Diamondback Energy, and others.

In addition to offering early crude service to our shippers, EPIC has closed the second open season on the EPIC Crude Oil Pipeline.

Because of its commercial success, EPIC will upsize its pipeline from a 24-inch line to a 30-inch line, expanding its Permian Basin capacity to approximately 600 MBbl/d. With the installation of additional pumps and storage, EPIC can increase the 30-inch capacity to approximately 900 MBbl/d.

The EPIC Crude Oil Pipeline will run side-by-side with the EPIC NGL Pipeline with the crude line expected to be completed by January 2020. The 30-inch pipe has been ordered from two steel mills and is expected to start arriving in early 2019. The same construction crews from the EPIC NGL Pipeline will be utilized enabling significant synergies to the construction timeline. All major equipment and pumps are currently on hand.

“Given our recent commercial success and subsequent upsizing of the pipeline, we remain responsive to growing demand for crude oil transportation from the Permian Basin.” said Phillip Mezey, Chief Executive Officer of EPIC. “We are proud to be able to offer an interim solution for our customers, while we continue to build out the EPIC Crude Oil Pipeline to service this region.”

About EPIC Pipeline

EPIC was formed in 2017 to build, own, and operate midstream infrastructure in both the Permian and Eagle Ford Basins. EPIC’s first two projects, the EPIC Crude Oil Pipeline and the EPIC NGL Pipeline, will transport crude and NGL across Texas for delivery into the Corpus Christi market. The EPIC Pipelines are backed by capital commitments from funds managed by the Private Equity Group of Ares Management, L.P. (NYSE: ARES). For more information, visit www.epicmid.com.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181005005090/en/

CONTACT: EPIC Midstream Holdings, LP

Bruce Kates, 210-446-1056

Corporate Communications Director

bruce.kates@epicmid.com

KEYWORD: UNITED STATES NORTH AMERICA TEXAS

INDUSTRY KEYWORD: ENERGY OIL/GAS

SOURCE: EPIC Midstream Holdings, LP

Copyright Business Wire 2018.

PUB: 10/05/2018 06:30 AM/DISC: 10/05/2018 06:30 AM

http://www.businesswire.com/news/home/20181005005090/en

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