What is an EPC Agreement? Here’s What You Need To Know

EPC contracts are an essential part of agreements in the power and energy sector today. That’s because an EPC arrangement between parties places responsibility on a single provider to oversee design and construct an entire facility. At the end, the EPC contractor often hands over a set of keys to the developer who can begin operating immediately. This is a closer look at the words behind this frequently used agreement.

Premier energy companies across the globe, whether it’s crude oil and natural gas companies, or others involved with LNG (Liquefied Natural Gas), LPG (Liquefied Petroleum Gas) or NGL (Natural Gas Liquids), tap Matrix Service for our EPC (engineering, procurement and fabrication) expertise. That’s because as a top EPC contractor, we understand the complexities involved to engineer, procure and construct large-scale infrastructure. More importantly, we know what it takes to complete EPC endeavors safely, within budget and on schedule. Whether it’s oil and gas terminals to feed pipelines or critical infrastructure like crude oil storage terminals, we can help you identify opportunities and develop solutions with our proven EPC services. In this article, we will break down each part of an EPC agreement and spotlight our expertise through examples.

What is an EPC Contract?

Before we delve into the nitty-gritty of EPC, let’s focus on some basic terminology. As we pointed out at the start, EPC stands for engineering, procurement and construction, and for many businesses in the oil and gas industry and others, it’s a highly effective turnkey solution to move product to market. For example, when we were commissioned to build six crude oil gathering terminals for a project for Energy Transfer, our EPC expertise facilitated the successful on-time, on-budget completion of terminals that feed the pipeline today. For large-scale, critical infrastructure like this, an EPC contract provides a highly effective turnkey solution. While the scope of an EPC appears straightforward, there’s a lot packed into these three terms, so let’s break them down.

Engineering in EPC Contract Work

When it comes to the engineering portion for EPC contracts, our engineering expertise is your edge to move more product to market. That’s because we focus on complete, multi-discipline solutions. Whether it’s feasibility studies, Front End Loading (FEL), Front-End Engineering Design (FEED) studies, 3D facility modeling, project cost estimates, P&ID development, plot plan development, structural design/analysis, tank design/analysis, electrical design, instruments/control systems, piping design/analysis or commissioning and training, our complete range of engineering services will bring a higher level of expertise to your next project. When you partner with us, you will see no one is better qualified than our team to deliver on every front when it comes to EPC contract work.

Procurement in EPC Projects

With an understanding of engineering, let’s turn our attention to procurement. In today’s marketplace, a winning procurement strategy means finding a partner who can deliver items to spec, within budget and on time. When you work with Matrix Service, you partner with a qualified leader who will successfully guide you through the procurement process. To us, that means always ensuring materials are sourced to specification. It means making sure deliveries arrive on schedule. And it means taking the initiative to move to the next phase. We are a provider who knows what it takes to procure items quickly to seize the moment when market conditions are right. Because doing so means your product moves to market, faster.

Construction and EPC Contracts

Projects come to life with construction. At Matrix Service, we offer a variety of industrial construction solutions and approach every project, regardless of size, with the same dedication to safety, quality and deadline sensitivity. We are proud of our ability to offer solutions and supply in-house capabilities and resources that help our customers meet their engineering, procurement, and construction goals.

To us, offering cost-effective turnkey construction services means providing clients with a single point of contact for complete terminal construction needs. In our eyes, that is what it means to operate as a top EPC company in the oil and gas sector. Whether its terminal construction, aboveground storage tanks, low temperature and cryogenic tanks or other specialty vessels, our EPC capabilities allow you to make the most of your expenses through one qualified partner.

Our recent success in the Midwest with Energy Transfer evidences client benefits enjoyed through the value we create as a top EPC firm.

Energy Transfer Work Scope: Engineering, Procurement and Terminal Construction Having been selected as the EPC contractor for the six crude oil gathering and storage terminals located in the Bakken oil fields of Great Plains and associated pumping facilities, our expertise was put to work. We provided the engineering, procurement and construction of all six terminals (with each terminal having a working capacity ranging from 200,000 to 600,000 barrels), including comprehensive site preparation, civil, structural, mechanical, piping, electrical and instrumentation.

Whether it’s providing engineering, constructability reviews and design assistance in the early stages of projects, or offering procurement, fabrication and construction services throughout the process until the turnkey operations are complete, you will see how our comprehensive expertise allows you to maximize expenditures and minimize disruption to workflow.