Phillips 66 Becomes Joint Venture Partner with Energy Transfer to Build Bakken Crude Oil Pipelines

abarrelfullabarrelfull wrote on 29 Oct 2014 18:08
Tags: bakken energy-transfer n-america phillips-66 pipeline usa

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Energy Transfer Equity, L.P. (NYSE:ETE), Energy Transfer Partners, L.P. (NYSE:ETP) (ETE and ETP collectively, “Energy Transfer”) and Phillips 66 (NYSE:PSX) announced that they have formed two joint ventures to develop the previously announced Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) projects. Energy Transfer holds a 75 percent interest in each joint venture and will operate both pipeline systems. Phillips 66 owns the remaining 25 percent interests and will fund its proportionate share of the construction costs. The DAPL and ETCOP projects are expected to begin commercial operations in the fourth quarter of 2016.

“We look forward to working with Phillips 66 to build this much-needed pipeline infrastructure to link rapidly growing supplies of domestically produced light crude oil in the Bakken/Three Forks play to refineries throughout the country,” said Kelcy Warren, chairman of ETE and chairman and CEO of ETP.

“Energy Transfer is a valued partner with a proven track record of developing major interstate pipelines,” said Greg Garland, chairman and CEO of Phillips 66. “These joint-venture projects will allow Phillips 66 to increase its access to advantaged North American crude oil and add to the momentum we are building in our Midstream business.”

Based on contractual commitments to date, DAPL is expected to deliver in excess of 450,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. DAPL will provide shippers with access to Midwestern refineries, unit-train rail loading facilities to facilitate deliveries to East Coast refineries, and the Gulf Coast market through an interconnection in Patoka, Illinois, with ETCOP. ETCOP will provide crude oil transportation service from the Midwest to the Sunoco Logistics Partners and Phillips 66 storage terminals located in Nederland, Texas.

In September, Energy Transfer announced the launch of a binding Expansion Open Season to assess additional interest in transportation service on DAPL and ETCOP above those levels previously announced. Subject to the terms and conditions of the Expansion Open Season, potential shippers will also have the opportunity to secure expansion transportation service from the Bakken/Three Forks production area to the Midwest and Gulf Coast, as well as to the Cushing hub in Oklahoma.

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