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Released December 11, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Epic Y-Grade Pipeline LP, a subsidiary of Epic Pipeline Company LLC, began construction last month on the Epic NGL Pipeline, which will carry y-grade natural gas liquids (NGL) from the Permian Basin and Eagle Ford Shale to refiners, petrochemical companies and export markets along the Texas Gulf Coast. Industrial Info is tracking $3.5 billion in active projects involving the NGL pipeline and its proposed sister Epic Crude Oil Pipeline, which will run 700 miles, largely along the same path.
On its in-service date, the NGL line is expected to carry at least 220,000 barrels per day (BBL/d) of product 650 miles from southeastern New Mexico to Corpus Christi, Texas, with several receipt points in the Permian Basin's Delaware and Midland basins. Segments include a $20 million portion in New Mexico that runs 16.5 miles; and in Texas, a $180 million portion that runs 161.5 miles, and a $500 million portion that runs 463 miles. Interconnections will be near the Texas cities of Orla, Midland and Corpus Christi. It is expected to be completed in early 2019, at which point it is expected to have a capacity of at least 375,000 BBL/d. For more information, see Industrial Info's project reports on the 16.5-mile, 161.5-mile and 463-mile segments.
Y-grade NGLs require further processing (or fractionation) to become marketable products. At the Corpus Christi interconnection, Southcross Energy Partners LP (NYSE:SXE) (Arlington County, Virginia) is preparing to begin construction early next year on an $800 million NGL fractionation plant, which will process 100,000 BBL/d of NGLs from the Epic pipeline. For more information, see Industrial Info's project report.
Industrial Info also is tracking $470 million worth of pump-station projects for the Epic NGL Pipeline.
Demand is growing in eastern Texas for dry natural gas and NGLs, because of new petrochemical projects, liquefied natural gas (LNG) terminals, and U.S. pipeline exports to Mexico, according to the U.S. Energy Information Administration. The Epic NGL pipeline is among several projects addressing that need. For more information, see March 21, 2017, article - New Permian Takeaway Capacity Planned as Basin Production Grows.
The Epic Crude Oil Pipeline is expected to transport 200,000 BBL/d of crude oil from the Permian Basin and Eagle Ford Shale to the Corpus Christi area, and eventually could be expanded to 440,000 BBL/d. Multiple receipt points would be near Orla, Pecos, Crane, and Midland in the Texas Permian Basin, and three other receipt points would be in the Eagle Ford. For more information, see Industrial Info's project report.
Industrial Info also is tracking $400 million worth of pump-station projects and $350 million worth of condensate-terminal projects for the Epic Crude Oil Pipeline, all of which are in the early planning stages. Industrial Info has rated these projects as having a medium probability (70%-80%) of actually kicking off.
Earlier this year, BP plc (NYSE:BP) signed on as an anchor shipper, which means it will be a customer for a minimum of 20 years. The project also secured a capital commitment from Ares Management LP (NYSE:ARES) (Los Angeles, California), which was the last financial hurdle before the project could move forward. TexStar Midstream Logistics LP (San Antonio, Texas) created Epic Pipeline Company LLC in March through a joint venture with Castleton Commodities International LLC and Ironwood Midstream Energy Partners LLC. TexStar Midstream operates as a subsidiary of Southcross Energy.
Last month, American Midstream Partners LP (NYSE:AMID) (Houston, Texas) announced it would acquire Southcross Energy as a subsidiary in an $815 million deal. American Midstream plans to sell up to $500 million in terminals and terminal-related assets to help finance the deal.
"The addition of the Southcross assets allows us to capture the full midstream value chain in the very prolific Eagle Ford basin," said Lynn L. Bourdon III, the chief executive officer of American Midstream, in a press release. "The transaction represents a unique opportunity to expand our onshore gathering, processing and transmission services, linking supplies from the economically attractive Eagle Ford shale to high-demand growth markets along the Gulf Coast."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
On its in-service date, the NGL line is expected to carry at least 220,000 barrels per day (BBL/d) of product 650 miles from southeastern New Mexico to Corpus Christi, Texas, with several receipt points in the Permian Basin's Delaware and Midland basins. Segments include a $20 million portion in New Mexico that runs 16.5 miles; and in Texas, a $180 million portion that runs 161.5 miles, and a $500 million portion that runs 463 miles. Interconnections will be near the Texas cities of Orla, Midland and Corpus Christi. It is expected to be completed in early 2019, at which point it is expected to have a capacity of at least 375,000 BBL/d. For more information, see Industrial Info's project reports on the 16.5-mile, 161.5-mile and 463-mile segments.
Y-grade NGLs require further processing (or fractionation) to become marketable products. At the Corpus Christi interconnection, Southcross Energy Partners LP (NYSE:SXE) (Arlington County, Virginia) is preparing to begin construction early next year on an $800 million NGL fractionation plant, which will process 100,000 BBL/d of NGLs from the Epic pipeline. For more information, see Industrial Info's project report.
Industrial Info also is tracking $470 million worth of pump-station projects for the Epic NGL Pipeline.
Demand is growing in eastern Texas for dry natural gas and NGLs, because of new petrochemical projects, liquefied natural gas (LNG) terminals, and U.S. pipeline exports to Mexico, according to the U.S. Energy Information Administration. The Epic NGL pipeline is among several projects addressing that need. For more information, see March 21, 2017, article - New Permian Takeaway Capacity Planned as Basin Production Grows.
The Epic Crude Oil Pipeline is expected to transport 200,000 BBL/d of crude oil from the Permian Basin and Eagle Ford Shale to the Corpus Christi area, and eventually could be expanded to 440,000 BBL/d. Multiple receipt points would be near Orla, Pecos, Crane, and Midland in the Texas Permian Basin, and three other receipt points would be in the Eagle Ford. For more information, see Industrial Info's project report.
Industrial Info also is tracking $400 million worth of pump-station projects and $350 million worth of condensate-terminal projects for the Epic Crude Oil Pipeline, all of which are in the early planning stages. Industrial Info has rated these projects as having a medium probability (70%-80%) of actually kicking off.
Earlier this year, BP plc (NYSE:BP) signed on as an anchor shipper, which means it will be a customer for a minimum of 20 years. The project also secured a capital commitment from Ares Management LP (NYSE:ARES) (Los Angeles, California), which was the last financial hurdle before the project could move forward. TexStar Midstream Logistics LP (San Antonio, Texas) created Epic Pipeline Company LLC in March through a joint venture with Castleton Commodities International LLC and Ironwood Midstream Energy Partners LLC. TexStar Midstream operates as a subsidiary of Southcross Energy.
Last month, American Midstream Partners LP (NYSE:AMID) (Houston, Texas) announced it would acquire Southcross Energy as a subsidiary in an $815 million deal. American Midstream plans to sell up to $500 million in terminals and terminal-related assets to help finance the deal.
"The addition of the Southcross assets allows us to capture the full midstream value chain in the very prolific Eagle Ford basin," said Lynn L. Bourdon III, the chief executive officer of American Midstream, in a press release. "The transaction represents a unique opportunity to expand our onshore gathering, processing and transmission services, linking supplies from the economically attractive Eagle Ford shale to high-demand growth markets along the Gulf Coast."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
