Noble Midstream secures $200 million for Permian Basin crude pipeline
Noble Midstream Partners has secured an investment of $200 million (€176 million) from Global Infrastructure Partners Capital Solutions Fund (GIP) to support the EPIC Crude Pipeline in Texas, US.
The equity commitment will be used to fund contributions to Dos Rios Crude Intermediate, the subsidiary holding Noble Midstream’s 30% interest in the pipeline.
Of the total investment, $100 million (€88 million) will be funded during Q1 2019, with the remaining half available for a one-year period, subject to conditions.
The EPIC Crude Pipeline will have an initial capacity of 590MBbl/d and will transport crude oil from the Permian Basin and Eagle Ford to the US Gulf Coast. Operations for an interim service are expected to begin in Q3 2019, with permanent service anticipated from January 2020.
“We look forward to having GIP as our partner given their extensive energy investing track record and believe this transaction is a further endorsement of our investment in the EPIC Crude Pipeline,” said John Bookout, CFO of Noble Midstream.
He added: “We are excited to capitalize on the growing demand for crude oil takeaway and export capability from the Permian Basin and look forward to adding a high-quality source of cash flow to our portfolio. The EPIC Crude Pipeline, together with our other recently announced joint ventures, is a crucial piece in building a leading Permian Basin midstream platform and delivering long-term value for our unitholders.”
Barclays Capital acted as financial advisor, while Vinson & Elkins offered legal advice to Noble Midstream, according to the company.