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Huge Pipeline Deal Approved | Crude from West Texas to Corpus Christi

Phillips 66 Partners plans to build a new pipeline system that will carry crude from West Texas to markets in Corpus Christi, Sweeny and Freeport in South Texas, the company said.

The Houston pipeline operator said it received enough commitments from oil producers in the Permian Basin to move forward with the construction of the Gray Oak Pipeline, which could pipe up to 700,000 barrels a day of crude starting by the end of next year.

The company, a master limited partnership formed by refining giant Phillips 66, said late Tuesday the pipeline system’s long-haul takeaway capacity could be expanded to about 1 million barrels a day if it becomes fully subscribed. The pipeline would connect to a new marine terminal that Houston’s Buckeye Partners, Phillips and Andeavor are building, with an initial storage capacity of 3.4 million barrels. [read more]

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