EPIC Crude Holdings, LP today announced the successful commissioning of its 30” permanent crude oil pipeline (the “Crude Oil Pipeline”). The Company is now making all crude oil deliveries out of the Crude Oil Pipeline and has ceased interim service deliveries from the 24” EPIC Y-Grade pipeline. The 30” Crude Oil Pipeline extends from EPIC’s Crane terminal to Robstown, TX, with an initial capacity of approximately 600,000 barrels of oil per day and is expected to be in full service on April 1, 2020. The pipeline currently has 2.3 million barrels of operational storage and will increase to a total of 5.4 million by April 1st. Remaining construction of the project is primarily focused on installing an additional 2.1 million barrels of operational storage, bringing total storage to 7.5 million barrels, as well as completing the East Dock that is expected to be operational in the second half of 2020 adding the capability of loading Suezmax vessels. The West Dock began loading operations in December 2019 and is adjacent to the East Dock. Concurrently with the commissioning of the 30” Crude Oil Pipeline, EPIC has begun the clean out process and transition of the 24” Y-Grade pipeline back to NGL service.
“EPIC’s ability to provide crude oil transport out of the Permian Basin and into the Corpus Christi market highlights the strategic value of our assets,” said Phil Mezey, CEO of EPIC. “I would like to thank our employees, customers and contractors who have enabled us to provide this vital service and I also want to commend those who worked on the line over the past 8 months for their attention to and focus on safety.”
Additionally, EPIC announced that it has closed on a $100 million incremental upsize of its existing Term Loan B, bringing the total Term Loan B to $1.1 billion, and closed on a new, $75 million Term Loan C. The incremental debt raised is on the same terms as the original Term Loan B. Proceeds from both loans will fund additional capital expenditures associated with the Crude Oil Pipeline and EPIC’s terminals and docks.
