EPIC Midstream Holdings LP said Oct. 10 it agreed to acquire an NGL fractionation facility near Corpus Christi, Texas, set to expand the company’s NGL infrastructure asset base and serve a rapidly developing market.
EPIC Y-Grade Holdings LP, a subsidiary of the San Antonio-based company, entered a definitive equity purchase agreement to buy the facility in Robstown, Texas, from an affiliate of Southcross Energy Partners LP (NYSE: SXE). The terms of the transaction weren’t disclosed.
The Robstown fractionator has a current capacity of 64,000 barrels per day (bbl/d) of NGL with an expansion underway to 68,000 bbl/d of capacity. The company will assume all of the NGL purchase and sale agreements associated with the Robstown fractionator including those with Southcross Energy as part of the purchase agreement.
The purchase will also include a 57-mile pipeline for the Robstown facility to receive NGL from various pipelines that allow the delivery of fractionated products to several Corpus Christi-area markets. Further, the Robstown asset also provides immediate fractionation capacity to EPIC NGL customers via Sand Hills Pipeline.
“EPIC is extremely pleased to meet our customers’ current need for NGL fractionation capacity in the Corpus Christi marketplace,” Phillip Mezey, CEO of EPIC Pipeline, said in a statement.
Backed by capital commitments from funds managed by the private-equity group of Ares Management LP (NYSE: ARES), EPIC was formed in 2017 to build, own and operate midstream infrastructure in both the Permian and Eagle Ford basins.
EPIC’s first two projects, the EPIC Crude Oil Pipeline and the EPIC NGL Pipeline, will transport crude and NGL across Texas for delivery into the Corpus Christi market.
Nate Walton, partner and co-head of North American private equity at Ares, said in a statement: “This acquisition will further expand EPIC’s NGL infrastructure asset base while allowing EPIC to immediately serve the rapidly developing Corpus Christi market.”
EPIC will also have incremental NGL fractionation capacity during first-quarter 2020 once its new 100,000 bbl/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 said it expects to close the Robstown transaction in November, subject to the satisfaction or waiver of customary closing conditions.
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