Phillips 66 has agreed to acquire EPIC Y-Grade GP and EPIC Y-Grade, LP, including their subsidiaries and natural gas liquids (NGL) infrastructure in the Permian Basin, US for $2.2bn in an all-cash deal.
The EPIC NGL portfolio consists of a fully integrated system encompassing nearly 1,770km of pipelines, two fractionation facilities, and a distribution network.
Key infrastructure includes a 1,424km NGL pipeline with a current capacity of 175,000 barrels per day (BPD). This pipeline connects production areas in the Delaware, Midland, and Eagle Ford basins to fractionation complexes near Corpus Christi, Texas, and the Phillips 66 Sweeny Hub.
Ongoing expansion projects aim to increase pipeline capacity to 225,000BPD, with further plans to expand to 350,000BPD.
The Robstown Fractionation Complex, located near Corpus Christi, operates two fractionators with a combined capacity of 170,000BPD.
EPIC NGL has identified the potential to add a third fractionator, which would raise its total fractionation capacity to 280,000BPD. The facilities provide connectivity between Permian Basin production and Gulf Coast refiners, petrochemical facilities, and export markets.
EPIC NGL’s assets also include over 1,120km of y-grade pipelines with a nameplate capacity of 300,000BPD, which can be scaled to 650,000BPD. These pipelines transport NGLs from gas processing plants in the Permian Basin and the Eagle Ford play to the Robstown Fractionation Complex.
The system also includes over 320km of purity product pipelines connecting the complex to ethane crackers, refineries, and export terminals along the Gulf Coast from Corpus Christi to Sweeny, Texas.
The 265km long Sweeny Lateral pipeline, completed in 2021, links the Robstown Fractionation Complex to the Sweeny fractionation and storage complex, operated jointly by Phillips 66 and Chevron Phillips Chemical.
Phillips 66 has confirmed that its recently announced 2025 capital programme will not be impacted by the ongoing expansion projects within the EPIC NGL system. The company said that the planned enhancements aim to increase transportation and fractionation capacity while maintaining alignment with its existing operations.
The transaction remains subject to regulatory clearance and customary closing conditions.
Last month, Phillips 66 signed a deal to divest DCP GCX Pipeline, which has a 25% non-operated equity interest in the Gulf Coast Express Pipeline, to an affiliate of ArcLight Capital Partners. This deal is valued at $865m in pre-tax cash proceeds, subject to standard purchase price adjustments.
