EPIC Midstream said that a subsidiary of EPIC Y-Grade has agreed to acquire the Robstown NGL fractionation facility located near Corpus Christi, Texas from Southcross Holdings Borrower.
Image: EPIC Pipeline to acquire Robstown NGL fractionation facility from Southcross. Photo: courtesy of Richard Dudley/Freeimages.com.
The purchase will also include a 57-mile pipeline that will enable the Robstown facility to receive natural gas liquids from various pipelines that allow the delivery of fractionated products to several Corpus Christi-area markets.
EPIC will assume all of the NGL purchase and sale agreements associated with the fractionator including those with Southcross Energy Partners, LP, a Southcross Holdings affiliate.
The Robstown fractionator has a current capacity of 64 thousand barrels per day (MB/D) of NGLs with an expansion underway to 68 MB/D of capacity.
The purchase of the Robstown fractionator provides immediate fractionation capacity to EPIC NGL customers via Sand Hills Pipeline.
EPIC will have incremental NGL fractionation capacity during first quarter 2020 once its new 100 MB/D fractionation unit under construction near the Robstown facility comes online and the final phase of the EPIC NGL Pipeline is returned from early crude service in January 2020.
EPIC Pipeline CEO Phillip Mezey said: “EPIC is extremely pleased to meet our customers’ current need for NGL fractionation capacity in the Corpus Christi marketplace.
Ares Management North American Private Equity partner and co-head Nate Walton said: “This acquisition will further expand EPIC’s NGL infrastructure asset base while allowing EPIC to immediately serve the rapidly developing Corpus Christi market.”
The EPIC Pipelines are backed by capital commitments from funds managed by the Private Equity Group of Ares Management, L.P.
The completion of the transaction is subject to the satisfaction or waiver of customary closing conditions, including the expiration or termination of any applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and there being no law or injunction prohibiting the consummation of the transaction.
EPIC expects to close the transaction in November.
Source: Company Press Release