EPIC Y-Grade will construct its second fractionator in Robstown, Texas, bringing the total fractionation capacity of the project to 270 thousand barrels per day
SAN ANTONIO, TX – December 12, 2019 –EPIC Y-Grade, LP (“EPIC” or “the Company”) is pleased to announce that a subsidiary will construct a second, 110,000 barrel per day greenfield fractionator at its Robstown, Texas, fractionation complex which currently consists of 70 thousand barrels per day of operational fractionation capacity and EPIC first greenfield fractionator that is still under construction. The decision to sanction the second greenfield fractionator resulted from EPIC’s continued success securing fixed-fee multiyear supply contracts with several gathering and processing companies in the Permian Basin.
In conjunction with making the Final Investment Decision (“FID”), the Company upsized its existing Term Loan B by $150,000,000 to finance the project. This upsize brings the total borrowing base of the Company to $950,000,000.
“We continue to execute on our strategic plan of bringing NGL supply for fractionation in the Corpus Christi, Texas, marketplace,” said Phillip Mezey, Chief Executive Officer of EPIC. “Our customers value EPIC as a strategic alternative to Mont Belvieu and we are committed to providing them the highest level of service.”
About EPIC Y-Grade, LP
EPIC Y-Grade, LP (“EPIC Y-Grade”) was formed in 2017 to build and operate the EPIC Y-Grade Pipeline, a 700-mile, 24” natural gas liquids pipeline linking NGL reserves in the Permian and Eagle Ford to gulf coast refiners, petrochemical companies and export markets. EPIC Y-Grade currently has 170,000 barrels per day of fractionation capacity located at the terminus of the pipeline in Robstown, Texas. Interim crude service on the 24” Y-Grade Pipeline began in August 2019, with an initial capacity of up to 400,000 barrels of crude from Crane, Texas, to various terminals in Corpus Christi and Ingleside, Texas. Upon commencing operations on the EPIC Crude Oil Pipeline, which is currently scheduled for the first quarter of 2020, the Y-Grade Pipeline will be transitioned back to NGL service. EPIC Y-Grade is backed by capital commitments from funds managed by the Private Equity Group of Ares Management Corporation (NYSE: ARES) as well as additional equity ownership by Noble Midstream Partners, L.P. (NYSE: NBLX) and Salt Creek Midstream, L.L.C. For more information, visit www.epicmid.com.
Media Contact:
EPIC Midstream Holdings, LP
David McArthur
Corporate Communications Director
(210) 446-1059