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Phillips 66 Launches Open Seasons For Crude Oil Projects

Phillips 66 and affiliate Phillips 66 Partners on Friday announced a suite of new crude oil pipeline projects and expansions to move growing volumes from the Rockies, West Texas, Midcontinent and Bakken shale production areas to points along the Gulf Coast.

Phillips 66 launched binding open seasons for the proposed Liberty and Red Oak pipelines. The Liberty project, also being developed by Wyoming-based Bridger Pipeline LLC, woud move 350,000 b/d of crude oil from the Rockies and Bakken to Corpus Christi, TX. Phillips said it’s expected to be placed into service by 4Q2020. Bridger and its affiliates operate systems in Wyoming, North Dakota and Montana.

The Red Oak Pipeline would move crude from Cushing, OK, to Corpus Christi, Houston and Beaumont, TX. Phillips said it’s expected to have an initial capacity of 400,000 b/d and also come online in 4Q2020. Both pipelines would be expandable depending on shipper interest.

Both the Liberty and Red Oak open seasons are scheduled to start on Nov. 12 at 12 p.m. CT. They come as oil production in each of the areas to be served has increased significantly in recent years. For more information about the Liberty Pipeline, contact Blake Hotzel at blake.r.hotzel@p66.com or Bridger’s Barry Oakes at barry.oakes@truecos.com. For more information about Red Oak, contact Alison Nelson at alison.r.nelson@p66.com.

Phillips 66 Partners (PSXP) also said on Friday that it would expand the open season for its Gray Oak Pipeline, which is currently under construction. The pipeline would transport crude oil from the Permian Basin in West Texas, along with crude from the Eagle Ford Shale, to PSXP’s Sweeny Hub near Houston and a new terminal in South Texas near Corpus Christi.

The expansion includes new takeaway capacity from Gray Oak origination stations in West Texas to destinations in the Corpus Christi and Freeport markets. The final scope and capacity, PSXP said, would depend on the outcome of the expansion open season. The expansion itself is expected to enter service in 4Q2020.

PSXP said last month that it would expand capacity on the entire system to 900,000 b/d from the previously announced capacity of 700,000 b/d to meet increased demand. Gray Oak was announced earlier this year in a wave of other crude and natural gas midstream projects primarily aimed at serving booming production from the Permian Basin in West Texas and southeast New Mexico.

The expansion open season is also set to begin on Nov. 12 at 12 p.m. CT. For more information, contact Corey Leonard at corey.leonard@p66.com.

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