Phillips 66, Enbridge partner on Texas pipeline
Greg Garland, CEO of Phillips 66
Houston-based Phillips 66 (NYSE: PSX) and Canada-based Enbridge Inc. (NYSE: ENB) are planning to build a pipeline from the Permian Basin in West Texas to the Gulf Coast.
The companies commenced the open season for the Gray Oak Pipeline at 12 p.m. Central Time on Dec. 11, according to a press release. The pipeline’s initial throughput capacity is expected to be 385,000 barrels per day, but the companies will evaluate a possible expansion if there’s enough shipper interest in the open season.
Expected to be in service in the second half of 2019, the Gray Oak Pipeline will offer origination stations in Reeves, Loving, Winkler, and Crane counties in West Texas. From there, the pipeline will connect to Corpus Christi, Freeport and Houston, where it will have access to more than 3 million barrels per day of refining capacity and multiple dock facilities capable of crude oil exports.
The pipeline announcement comes shortly after both companies emphasized their commitment to such projects.