PIPELINES

San Antonio Express-News - - BUSI­NESS -

Moody’s.

San An­to­nio pipe­line com­pany EPIC Mid­stream has said it will tem­po­rar­ily con­vert a nat­u­ral gas liq­uids pipe­line from the Per­mian to the Cor­pus Christi re­gion to oil when it comes on­line in the third quar­ter of 2019. That pipe­line will re­vert back to car­ry­ing nat­u­ral gas liq­uids when EPIC com­pletes a pipe­line for crude in early 2020.

The pipe­line ca­pac­ity short­fall is ex­pected to ease sig­nif­i­cantly by the fourth quar­ter of 2019, and pipe­line ca­pac­ity out of the Per­mian is ex­pected to grow to around 8 mil­lion bar­rels a day by the third quar­ter of 2020 — plenty to ac­com­mo­date fu­ture pro­duc­tion, which could grow by 1 mil­lion bar­rels a day each year, ac­cord­ing to Moody’s.

Sim­i­lar pipe­line con­straints are af­fect­ing nat­u­ral gas and nat­u­ral gas liq­uids, though Moody’s said nat­u­ral gas con­straints are less of an is­sue for ex­plo­ration and pro­duc­tion com­pa­nies.

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