EPIC signs capacity agreement with BP for new 1,046 km NGL pipeline
EPIC Y Grade Pipeline has signed a definitive agreement with BP Energy Company in the US to construct a new 1,046 km (650 mile) natural gas liquids (NGL) pipeline, to be known as the EPIC NGL Pipeline.
The pipeline will link NGL reserves produced in the Permian and Eagle Ford Basins to Gulf Coast refiners, petrochemical companies and export markets.
The pipeline, which has already begun construction and will run alongside the EPIC Crude Oil Pipeline for most of the route, has secured a capital commitment from funds managed by Ares Management, LP.
It will have a minimum throughput capacity of 220,000 bbl/d, with origin points in the Delaware and Midland basins.
Destinations for the product include Orla, Benedum and Corpus Christi, Texas, where EPIC’s affiliate plans to accommodate the pipeline’s volume by building a fractionation complex.
“We look forward to providing a straight-forward, independent solution to shippers’ NGL marketing and transportation needs.”
Commenting on the opportunity to extend its services to meet market sector needs, BP Energy Company President and CEO Orlando Alvarez 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 US, Gulf Coast.”
In the fourth quarter of 2017, shippers will have the opportunity to secure firm capacity when EPIC conducts an US Federal Energy Regulatory Commission open season.
EPIC is currently acquiring rights of way, and aims to have the initial phase of the pipeline in service in early 2018.
For more information visit the EPIC website.
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