Phillips 66 JVs to Tackle Projects Worth $4B+
Phillips 66 revealed Monday that it has formed two 50/50 joint ventures (JV) which will tackle projects worth over $4 billion.
The company has teamed up with Plains All American Pipeline to create Red Oak Pipeline LLC, which will proceed with the construction of the Red Oak Pipeline system. This system will provide a crude oil transportation service from Cushing, Oklahoma, and the Permian Basin in West Texas to Corpus Christi, Ingleside, Houston and Beaumont, Texas.
Initial service from Cushing to the Gulf Coast is targeted to commence as early as the first quarter of 2021, subject to receipt of applicable permits and regulatory approvals. Plains will lead project construction on behalf of the JV, and Phillips 66 will operate the pipeline. The project is expected to cost approximately $2.5 billion.
Phillips 66 has also joined forces with Bridger Pipeline LLC to form Liberty Pipeline LLC, which is proceeding with the construction of the Liberty Pipeline. The 24-inch pipeline will provide a crude oil transportation service from the Rockies and Bakken production areas to Cushing, Oklahoma.
Initial service on the pipeline is targeted to commence in the first quarter of 2021, subject to receipt of applicable permits and regulatory approvals. Phillips 66 will lead project construction on behalf of the JV and will operate the pipeline. This project is expected to cost approximately $1.6 billion.
“We are pleased to partner with Plains to build Red Oak,” Greg Garland, Phillips 66 chairman and CEO, said in a company statement.
“The pipeline provides a competitive outlet for shippers to access the key market centers along the Texas Gulf Coast from Cushing and the Permian,” he added.
“The Liberty Pipeline presents us with a great opportunity to serve producers in the growing Bakken and Rockies production areas,” Garland continued.
Phillips 66 describes itself as a diversified energy manufacturing and logistics company. The company, which is headquartered in Houston, has a portfolio of midstream, chemicals, refining and marketing and specialties businesses.