EPIC Midstream said that it has secured key capacity commitments for its 1,126km Epic Crude Oil Pipeline that will connect southeastern New Mexico and Corpus Christi in Texas.

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Image: Pipeline system. Photo: courtesy of supakitmod/Freedigitalphotos.net.

The midstream company revealed that Apache and Noble Energy have committed to anchor the crude oil pipeline, which will initially provide 590,000 barrels per day of capacity from the Permian and Eagle Ford Basins to refining and export markets in and around Corpus Christi.

While 440MBbl/d of the initial capacity will be sourced from the Permian Basin, the remaining 150MBbl/d will come from the Eagle Ford Basin, said EPIC Midstream.

Apache has committed to 75MBbl/d while Noble Energy has agreed to 100MBbl/d of firm capacity of the crude oil pipeline. EPIC Midstream has reserved at least 10% of the pipeline capacity for uncommitted shippers.

According to EPIC Midstream, Apache will have an option to purchase a stake of up to 15% in the EPIC Crude Oil Pipeline. On the other hand, Noble Energy will have an option to buy a stake of up to 30% in the crude oil pipeline and also up to 15% of the side-by-side built EPIC NGL Pipeline.

Apache midstream and marketing senior vice president Brian Freed said: “As one of the largest acreage holders in the Permian Basin, Apache’s participation in the EPIC Crude Oil Pipeline helps to ensure takeaway capacity for our production from the region.

“The partnership enhances our long-term operational flexibility and market optionality in our Delaware and Midland Basin focus areas.

Noble Energy has secured the capacity for a 10-year period, starting from the commissioning of the pipeline, which is expected to be in the second half of 2019.

Noble Energy operations executive vice president Gary W. Willingham said: “Noble Energy’s strategic agreement with EPIC provides long-term flow assurance for our rapidly growing Delaware Basin oil volumes.

“With this agreement, we have further diversified our onshore marketing outlets with access to the Gulf Coast and global markets.”