West Texas-Gulf Coast Crude Line Proceeds
Mon, April 30, 2018
The pipeline will be owned by Gray Oak Pipeline LLC, a joint venture of Phillips 66 Partners, 75%, and Andeavor, 25%. Third parties, including Enbridge Inc., have an option to acquire up to 32.75% of the joint venture from the Phillips 66 Partners interest.
The first phase is due in service by the end of 2019 with a capacity of 385,000 b/d.
The ultimate capacity and scope of the system will depend on results of the second open season enabling additional shippers to enter agreements for long-term service.
Phillips 66 Partners said the new open season might lead to capacity expansion to 700,000 b/d. If that capacity is fully subscribed, it said, capacity ultimately might reach 1 million b/d.
Origination stations will be in Reeves, Loving, Winkler, and Crane counties in West Texas. The system also will receive crude oil from the Eagle Ford play in South Texas.
It will deliver crude to Corpus Christi, Freeport, and Houston.
At Corpus Christi, the pipeline will connect to a new terminal under construction by Buckeye Partners LP. Terminal ownership will be Buckeye, 50%, and Phillips 66 Partners and Andeavor, 25% each.
Scheduled to begin operations by the end of 2019, the terminal will have initial storage capacity of 3.4 million bbl.
