New US oil pipelines cause shift in regional price dynamics

The second new crude pipeline in as many weeks has started moving oil from West Texas to the US Gulf Coast, adding to the pool of available light sweet in the region and squeezing the price spread between the two locations. EPIC Crude Holdings said August 19 that its 24-inch-diameter EPIC interim crude line has begun delivering crude from the Permian Basin to various terminals in Corpus Christi and Ingleside, Texas. The line has the capacity to deliver up to 400,000 b/d and is expected to gradually ramp up to that nameplate capacity over time. At the same time, construction of EPIC’s 30-inch-diameter permanent crude line is about half-way complete and is expected to start up in January 2020. The permanent crude oil pipeline will have an initial capacity of 600,000 b/d, with throughput anticipated to begin ramping up during the first quarter of 2020. EPIC joins Cactus II on the list of newly-opened pipelines that are bringing more West Texas crude to the Coast. Cactus II, which began flowing the week of August 12, has the capacity to move up to 670,000 b/d to the Corpus Christi area. Additionally, the 900,000 b/d Gray Oak pipeline is expected to start… continue reading

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Source: CTRM Center

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