EPIC Midstream Holdings LP announced that the EPIC Crude Oil Pipeline has successfully closed its first open season on July 26, 2018. The company has also executed definitive agreements to add Diamondback Energy as a strategic partner and signed other new primary shippers. Diamondback will have 50 Mbpd of oil capacity on the EPIC Crude Oil Pipeline. As a strategic partner, Diamondback, via its subsidiary Rattler Midstream LLC, will also have an option to acquire up to 5% of the equity in the EPIC Crude Oil Pipeline, with the option expiring in the first quarter of 2019. Other newly signed primary shippers have secured 200 Mbpd of capacity, which include minimum volume commitments of 150 Mbpd on the EPIC Crude Oil Pipeline and will also be delivering Eagle Ford volumes to the pipeline at EPIC’s Gardendale, TX terminal.
With these commitments, shippers have secured 425 Mbpd of capacity originating from the Permian Basin on the EPIC Crude Oil Pipeline, and given strong commercial interest, EPIC will commence a second open season. Based upon the results of the second open season, EPIC will consider upsizing from a 24-inch line to a 30-inch line, expanding its Permian Basin capacity.
As previously announced, Apache Corp. and Noble Energy have committed to anchor the EPIC Crude Oil Pipeline for 75 Mbpd and 100 Mbpd of capacity, respectively. At least 10 percent of system capacity will be reserved for uncommitted shippers.