Three companies have entered into a joint venture to build the EPIC NGL pipeline; a 730-mile crude oil and condensate pipeline that will link the oil fields of the Permian Basin in West Texas to refineries and marine terminals at Port Corpus Christi in the Gulf of Mexico. The companies have already raised $1 billion for the line that will be the state’s longest pipeline since at least 2008.
It is being built by San Antonio-based TexStar Midstream Logistics, Connecticut-based Castleton Commodities International and Texas-based Ironwood Midstream Energy Partners. Ironwood maintains its engineering and operations in Dallas while its business development and finance units are based in San Antonio.
With receipt points for crude oil and condensate in Texas including Orla, Pecos, Crane and Midland, the EPIC Pipeline will use 16-, 20-, 24- and 30-inch pipelines to deliver up to 440,000 barrels of crude oil and condensate per day to destinations in the Corpus Christi area.
The companies are currently bidding out the first 200,000 barrels of pipeline capacity and have not said how much it will cost to build the pipeline or when they plan to start construction. Construction for the pipeline is expected to be completed by first quarter 2019. TexStar is overseeing a 45-day open season for companies interested in using the pipeline.
Several assets are already in operation in Eagle Ford, San Antonio and Houston. TexStar CEO Phil Mezey said the company is excited to extend its business in the Permian Basin, which has become the the hottest shale play in the United States.
“TexStar and its partners are excited to extend our business into the Permian Basin, where we see tremendous opportunity and continued growth. TexStar has a proven track record of building crude oil pipelines in emerging areas and looks forward to expanding upon its relationships with producers to make the project a success,” Mezey said in a statement.
The open season will end April 15, and if successful, a second open season may allow operators from the Eagle Ford Shale and other points along the 730-mile route to use the pipeline.
Click here to visit EPIC’s project page.
If you have been contacted by any of these companies, please call us today at 512-894-5426 to schedule a free, 30-minute consultation to learn more about how Braun & Gresham, PLLC can help protect your land.