Permian Basin Takeaway Capacity Update

[dan_s]

TPH Morning Notes 10-5-2018:
EPIC Midstream announced today that it would temporarily convert its upcoming 440mbpd Permian-to-Corpus NGL pipeline to crude service in Q3'19. The line will run at 400mbpd, and shippers include NBL and others. The release did not specify exactly when in Q3'19 construction would finish. EPIC also announced that its upcoming crude line, which is scheduled to complete in Q1'20, has been upsized to 600mbpd from 440mbpd. Together with the 400mbpd of takeaway from the PAA/Cactus II line in Sep'19, we now see Midland difs contracting to pipeline economics for at least the last four months of 2019, if not earlier. Our previous $8/bbl Mid-Cush crude dif in Q4'19 is too wide, and we revise it down to $2.50/bbl.

MY TAKE: A year from now this issue will be old news.