EPIC Y-Grade sells excess pipeline capacity to WhiteWater Midstream and MPLX, as well as adds storage and fractionation capacity in Sweeny, Texas
EPIC Y-Grade, LP ("EPIC" or "the Company") is pleased to announce that a subsidiary has fully commissioned and placed into service its first 110,000 barrel per day greenfield fractionator at its Robstown, Texas, fractionation complex. EPIC’s total nameplate fractionation capacity is 180,000 barrels per day, which services Corpus Christi, Texas, and other Texas Gulf Coast markets.
Additionally, the Company has completed a strategic transaction with MPLX and WhiteWater Midstream, including the sale of an undivided joint interest in the EPIC Y-grade pipeline from Benedum to Gardendale, as well as transportation agreements on certain other segments from Orla, Texas, to Sweeny, Texas. Proceeds from the transaction will be reinvested into the Company. In order to make NGL deliveries to Sweeny, EPIC will extend its existing long-haul 12" ethane pipeline from Markham to Sweeny and convert the pipeline to NGL service by third quarter 2021. EPIC’s Corpus Christi fractionation complex will have direct Y-grade, ethane and propane connections with the Sweeny fractionation complex.
In conjunction with the transaction, the Company has executed multi-year contracts with Phillips 66 for NGL and ethane storage, ethane transportation and fractionation capacity. These agreements provide added operational flexibility, new service offerings and diversified markets for EPIC shippers. EPIC’s total owned and controlled fractionation capacity is 220,000 barrels per day across the Texas Gulf Coast.
"The commissioning of our first greenfield fractionator further demonstrates EPIC’s ability to deliver major projects safely and successfully," said Phillip Mezey, Chief Executive Officer of EPIC. "The transaction provides producers and processors in the Permian Basin another Mt. Belvieu alternative—without the need for a new-build pipeline—while greatly enhancing the connectivity between the Corpus Christi and Sweeny NGL systems."
About EPIC Y-Grade, LP
EPIC Y-Grade, LP ("EPIC Y-Grade") was formed in 2017 to build and operate the EPIC Y-Grade Pipeline, a 700-mile, 24" natural gas liquids pipeline linking NGL reserves in the Permian and Eagle Ford to Gulf Coast refiners, petrochemical companies and export markets. EPIC Y-Grade Pipeline currently 180,000 barrels per day of nameplate fractionation capacity located at its terminus in Robstown, Texas. EPIC Y-Grade is backed by capital commitments from funds managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES) as well as additional equity ownership by Noble Midstream Partners, L.P. (NASDAQ: NBLX) and Salt Creek Midstream, L.L.C. For more information, visit www.epicmid.com.
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EPIC Midstream Holdings, LP
Corporate Communications Director