US EPIC to build ethane, ethylene pipelines to support Exxon-SABIC JV cracker project in Texas

HOUSTON (ICIS)–EPIC Y-Grade Holdings will build more than 130 miles of 12” ethane and ethylene pipeline to support the Gulf Coast Growth Ventures (GCGV) steam cracker project near Corpus Christi, Texas, the US midstream energy company said on Thursday.

Photo by REX Shutterstock

GCGV,  a joint venture between ExxonMobil and Saudi Arabia’s SABIC, is building a petrochemicals complex in San Patricio County, Texas that will include a 1.8m tonne/year ethane cracker, two polyethylene (PE) units and a monoethylene glycol (MEG) plant.

The ethane and ethylene pipelines are expected to be completed by the third quarter of 2020.

EPIC added that its transportation agreements with GCGV “are multiyear and are underpinned by minimum volume commitments.”

EPIC will built the pipelines through two affiliates, EPIC Y-Grade Pipeline LP and EPIC Olefins LP. Financial terms were not disclosed.

“We are extremely proud to be a key supplier and service provider to Gulf Coast Growth Ventures as they construct a world class ethane cracker in the lower Gulf Coast,” said Phillip Mezey, CEO of EPIC.

“These strategic infrastructure investments by both of our companies will continue to drive future investment in the greater Corpus Christi area,” he added.

San Antonio, Texas-based EPIC was formed in 2017 to build, own and operate midstream infrastructure in both the Permian and Eagle Ford Basins.

Additional reporting by Al Greenwood