Epic Y-Grade Holdings LP said Thursday two of its affiliates were selected to build more than 130 miles of ethane and ethylene pipeline to support the massive steam cracker underway in South Texas.
Epic Y-Grade Pipeline LP and Epic Olefins LP plan to complete by 3Q2020 two 12-inch diameter pipelines for Gulf Coast Growth Ventures (GCGV) in San Patricio County near Corpus Christi.
“These strategic infrastructure investments by both of our companies will continue to drive future investment in the greater Corpus Christi area,” Epic CEO Phillip Mezey said.
GCGV was formed last year by ExxonMobil and state-owned Saudi Basic Industries Corp., aka SABIC, to build what has been billed as the world’s largest steam cracker, a 1.8 million metric ton/year (mmty) facility. The project, sanctioned in June, is expected to start up in 2022, fueled by Lower 48 natural gas. Included in the design are two polyethylene units and a monoethylene glycol unit.
The multi-year transportation agreements between San Antonio, TX-based Epic and GCGV are underpinned by minimum volume commitments.
Epic was formed two years ago to build, own and operate oil and natural gas liquids (NGL) midstream infrastructure in the Permian Basin and Eagle Ford Shale.
The first two projects, the Epic Crude Oil Pipeline and the parallel Epic NGL Pipeline, would transport Permian crude and liquids into the Corpus market. The 30-inch diameter crude pipeline is expected to begin interim service before the end of September with permanent service in January.
The Epic systems are backed by capital commitments from funds managed by Ares Management Corp.’s private equity group.