February 8, 2019 [Chron] - A subsidiary of Houston oil company Noble Energy purchased stakes in a pair of pipelines to move crude oil and natural gas liquids from the Permian Basin to the Port of Corpus Christi.
Houston pipeline and storage terminal operator Noble Midstream Partners reported buying a 30 percent stake in the EPIC Crude Oil Pipeline and a 15 percent stake in the EPIC Y-Grade Pipeline.
In a statement released Monday morning, Noble Midstream said the company anticipates investing between $330 million and $350 million in cash for its stake of the crude oil pipeline and another $165 million to $180 million for its stake of the EPIC Y-Grade Pipeline.
“We are excited to work with our new partners and participate in the EPIC projects, capitalizing on the growing demand for crude oil and NGL takeaway and export capability from the Permian Basin,” Noble Midstream CEO Terry Gerhart said in a statement. “These additions are complementary to our existing portfolio, enhance our customer diversification, and will add a stable and high-quality source of cash flow from a premier U.S. unconventional basin.“
The two Permian Basin-to-Corpus Christi projects are being developed by San Antonio pipeline operator EPIC Midstream Holdings LP.
The EPIC Y-Grade Pipeline is a 700-mile pipeline to move natural gas liquids, or NGLs, from the Permian Basin of New Mexico and West Texas to a facility in Robstown.
The EPIC Crude Oil Pipeline is a 650-mile project to move crude oil and from seven terminals in the Permian Basin and Eagle Ford Shale of South Texas to a facility in Robstown.
As part of a plan announced in October, EPIC plans to temporarily use its natural gas liquids pipeline to ship crude oil starting in the third quarter.
Construction of the crude oil pipeline is expected to be complete by January 2020. Los Angeles private equity firm Ares Management is backing both the natural gas liquids and crude oil pipelines.
“The strategic value of these projects to our shippers is clear through the exercising of the options by our partners,” EPIC Midstream Holdings CEO Phillip Mezey said in a statement. “Both projects remain on schedule and are critical to the continued development of the Permian Basin and Eagle Ford Shale.”
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