Phillips 66 Partners to acquire Louisiana NGL logistics assets
Phillips 66 Partners (the “Partnership”) has reached an agreement with Chevron to acquire a NGL logistics system in southeast Louisiana. The system includes approximately 500 miles of pipelines and a storage cavern connecting multiple fractionation facilities, refineries and a petrochemical facility.
“We are committed to a growth strategy that includes dropdowns from our sponsor Phillips 66, organic projects and third-party acquisitions,” said Tim Taylor, Phillips 66 Partners president. “This acquisition will expand the Partnership’s NGL footprint into the Louisiana market. The assets are strategically located and connect offshore production, local refineries and petrochemical facilities in south Louisiana while providing significant opportunities for fee-based growth.”
The acquisition includes the following assets:
- TENDS Pipeline System, an approximately 300-mile, bidirectional NGL pipeline system connected to third-party fractionators, refineries -- including the Phillips 66 Alliance Refinery -- and a petrochemical plant.
- VP Pipeline / EP Pipeline, approximately 200 miles of regulated pipelines that carry raw NGLs from a third-party natural gas processing plant to pipeline and fractionation infrastructure.
- Sorrento Cavern, a salt dome cavern with approximately 1.5 million barrels of NGL storage capacity located in Ascension Parish.
The transaction is expected to close in the Q4 of 2016, pending regulatory approvals.
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