Phillips 66, Energy Transfer & Sunoco Logistics Form Joint Venture to Construct Crude Oil Pipeline from Nederland, Texas, to ...
July 30 2015 - 5:00PM
Business Wire
Joint venture will launch expansion open season
for service to St. James, Louisiana
Phillips 66 (NYSE: PSX), Energy Transfer Partners, L.P. (NYSE:
ETP) and Sunoco Logistics Partners L.P. (NYSE: SXL) announced that
they have formed a joint venture to construct the Bayou Bridge
pipeline that will deliver crude oil from the Phillips 66 and
Sunoco Logistics terminals in Nederland, Texas, to Lake Charles,
Louisiana. The joint venture will also launch an expansion open
season for service to the market hub in St. James, Louisiana.
Phillips 66 holds a 40 percent interest in the joint venture and
Energy Transfer and Sunoco Logistics each hold a 30 percent
interest. Sunoco Logistics will be the operator of the system.
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“The Bayou Bridge pipeline, combined with the storage and
logistics capabilities of our Beaumont Terminal, provides enhanced
opportunities to deliver North American heavy and light crudes into
the Louisiana market that is heavily dependent today on marine and
rail delivery of crude oil,” said Greg Garland, chairman and CEO of
Phillips 66. “The pipeline also complements other pipeline projects
we have underway to deliver Bakken crude oil to the Gulf
Coast.”
“Energy Transfer is excited to be part of the Bayou Bridge
pipeline with our two joint venture partners,” said Lee Hanse,
executive vice president of Energy Transfer Partners. “This project
is the logical next step in our development of logistical
infrastructure to move crude oil to market centers across the U.S.,
and we believe that it will be a critical conduit for our shippers
to transport multiple grades of crude oil to the major refining
market in Louisiana.”
“We are pleased to partner with Energy Transfer and Phillips 66
on the Bayou Bridge pipeline,” said Michael Hennigan, president and
CEO of Sunoco Logistics. “We believe being connected to our 25
million barrel Nederland crude terminal on the Gulf Coast greatly
benefits this project. Our extensive pipeline system connects our
West Texas Permian, southern Oklahoma, Granite Wash, Eaglebine and
East Texas systems to our Nederland terminal and now will have
enhanced capability to further deliver crude barrels eastward on
the Bayou Bridge pipeline into Louisiana.”
Construction is underway on the Nederland to Lake Charles
segment of the pipeline, which will be 30-inch diameter and is
expected to begin commercial operations in the first quarter of
2016. The companies will also launch a binding expansion open
season to assess additional shipper interest for service with
connectivity to existing terminal infrastructure and refineries in
and around the St. James area. The results of the expansion open
season will be used to determine the size of the pipeline to St.
James, which has a forecasted in-service date of the second half of
2017.
The binding expansion open season will commence in the third
quarter of 2015. Bona fide potential shippers that would like to
receive copies of the expansion open season documents, the
throughput and deficiency agreement, and proposed tariffs must
first sign a confidentiality agreement. More information about the
open season will be available on the ETP website at
www.energytransfer.com/ops_lc_sj.aspx upon commencement of the open
season or by email request to lc_sj@energytransfer.com.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics
company. With a portfolio of Midstream, Chemicals, Refining, and
Marketing and Specialties businesses, the company processes,
transports, stores and markets fuels and products globally.
Phillips 66 Partners, the company's master limited partnership, is
an integral asset in the portfolio. Headquartered in Houston, the
company has 14,000 employees committed to safety and operating
excellence. Phillips 66 had $49 billion in assets as of March 31,
2015. For more information, visit www.phillips66.com or follow us
on Twitter @Phillips66Co.
About Energy Transfer Partners
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership owning and operating one of the largest and most
diversified portfolios of energy assets in the United States. ETP’s
subsidiaries include Panhandle Eastern Pipe Line Company, LP (the
successor of Southern Union Company) and Lone Star NGL LLC, which
owns and operates natural gas liquids storage, fractionation and
transportation assets. In total, ETP currently owns and operates
more than 62,000 miles of natural gas and natural gas liquids
pipelines. ETP also owns the general partner, 100% of the incentive
distribution rights, and approximately 67.1 million common units in
Sunoco Logistics Partners L.P. (NYSE: SXL), which operates a
geographically diverse portfolio of crude oil and refined products
pipelines, terminalling and crude oil acquisition and marketing
assets. ETP owns 100% of Sunoco, Inc. and 100% of Susser Holdings
Corporation. Additionally, ETP owns the general partner, 100% of
the incentive distribution rights and approximately 44% of the
limited partner interests in Sunoco LP (formerly Susser Petroleum
Partners LP) (NYSE: SUN), a wholesale fuel distributor and
convenience store operator. ETP’s general partner is owned by
Energy Transfer Equity, L.P. (NYSE: ETE). For more information,
visit the Energy Transfer Partners, L.P. website at
www.energytransfer.com.
About Sunoco Logistics
Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in
Philadelphia, is a master limited partnership that owns and
operates a logistics business consisting of a geographically
diverse portfolio of complementary crude oil, refined products, and
natural gas liquids pipeline, terminalling and acquisition and
marketing assets which are used to facilitate the purchase and sale
of crude oil, refined products, and natural gas liquids. SXL’s
general partner is a consolidated subsidiary of Energy Transfer
Partners, L.P. (NYSE: ETP). For more information, visit the Sunoco
Logistics Partners L.P. web site at www.sunocologistics.com.
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject
to a variety of known and unknown risks, uncertainties, and other
factors that are difficult to predict and many of which are beyond
management’s control. An extensive list of factors that can affect
future results are discussed in the Annual Reports on Form 10-K and
other documents filed by Phillips 66, Energy Transfer and Sunoco
Logistics from time to time with the Securities and Exchange
Commission. Phillips 66, Energy Transfer and Sunoco Logistics
undertake no obligation to update or revise any forward-looking
statement to reflect new information or events.
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version on businesswire.com: http://www.businesswire.com/news/home/20150730006710/en/
Phillips 66Investor Relations:Kevin Mitchell,
832-765-2297kevin.mitchell@p66.comorMedia Relations:Dennis
Nuss, 832-765-1850dennis.h.nuss@p66.comorEnergy
TransferInvestor Relations:Energy TransferBrent Ratliff,
214-981-0700orMedia Relations:Granado Communications
GroupVicki Granado, 214-599-8785214-498-9272 (cell)orSunoco
LogisticsInvestor Relations:Peter Gvazdauskas,
215-977-6322orMedia Relations:Jeff Shields, 215-977-6056
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