The Briefing Room
General Category => Science, Technology and Knowledge => Energy => Topic started by: thackney on May 14, 2018, 05:48:01 pm
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Apache, Noble sign on for EPIC Permian oil pipeline
https://www.chron.com/business/energy/article/Apache-Noble-sign-on-for-EPIC-Permian-oil-12907134.php (https://www.chron.com/business/energy/article/Apache-Noble-sign-on-for-EPIC-Permian-oil-12907134.php)
Friday, May 11, 2018
Houston oil producers Apache Corp. and Noble Energy have signed on as the primary customers for the massive EPIC Crude Oil Pipeline that will traverse Texas from the booming Permian Basin near the New Mexico border to Corpus Christi.
The 730-mile pipeline is slated to be built by San Antonio-based EPIC Midstream Holdings as one of the biggest of a bevy of major pipeline projects underway to carry oil, gas and natural gas liquids from the Permian to port and refining hubs near Corpus Christi and Houston.
EPIC Midstream is financially backed by the Ares Management private equity group. EPIC also is building a similar, natural gas liquids pipeline adjacent to the crude oil project. BP is signed on as the anchor customer for the NGL pipeline.
Apache and Noble have committed to use 30 percent of the EPIC oil pipeline's planned capacity of 590,000 barrels a day. The pipeline is slated to come online by the end of 2019 to help relieve the bottleneck that's building in the Permian with rising crude production and not enough pipeline capacity to move it out of West Texas....
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Since this is all Texas, this pipeline will not have to undergo the political nonsense that a multi-state pipeline like Dakota had to endure.
So nothing stupid like rail shipping will need to occur for the most part.
The state of Texas is incentivized further to approve expeditiously should its state mineral leases, numerous in the Permian, not include provisions to calculate royalties without deductions of transportation costs. Most mineral leases include provisions to deduct transportation expenses of shipping to sales point prior to calculating royalties.