Phillips 66 Partners takes 50% interest in Liberty oil pipeline
“The Liberty pipeline is a great addition to the Phillips 66 Partners portfolio,” said Greg Garland, Phillips 66 Partners’ chairman and CEO. “It is a strong organic project and continues our strategy of growing PSXP with stable fee-based cash flows, supported by long-term volume commitments.
“Phillips 66 Partners is well positioned to execute this pipeline project on the heels of successfully starting up the Gray Oak pipeline. We remain committed to maintaining a strong financial position and disciplined capital allocation, investing in projects with attractive returns and delivering growing distributions to unitholders.”
The 24-inch Liberty pipeline will transport crude oil from the Rockies and Bakken production areas in the US to Cushing in Oklahoma. Service on the pipeline is expected to begin in 2021, with several long-term volume commitments already agreed.
The pipeline is expected to cost around $1.6 billion (€1.5 billion) on a gross basis, or $800 million (€738.7 million) net to Phillips 66 Partners.