Phillips 66, Energy Transfer Partners collaborate on pipelines

By The Bakken Magazine Staff | December 12, 2014

Phillips 66 and Energy Transfer Partners have formed a joint venture to ensure the completion of two pipelines designed to move Bakken crude from North Dakota to various refineries on the West coast. The partnership will aid in developing the Dakota Access Pipeline (DAPL), a proposed 450,000 barrel of oil per day system that will move Bakken crude from western North Dakota to Patoka, Illinois. It will also help build the Energy Transfer Crude Oil Pipeline from Illinois to Texas.

The pipelines, which could be online by the end of 2016, will be constructed by Energy Transfer. Energy Transfer will own 75 percent of each pipeline, while Phillips 66 will own 25 percent and help pay off its proportionate costs of construction of each pipeline.

“We look forward to working with Phillips 66 to build this much-needed pipeline infrastructure to link rapidly growing supplies of domestically produced light crude oil in the Bakken and Three Forks play to refineries throughout the country,” said Kelcy Warren, CEO of ETP.

Greg Garland, chairman and CEO of Phillips 66, said the joint-venture will help the company “increase its access to advantaged North American crude oil and add the momentum we are building in our midstream business.”

“ETCOP will have an interconnection with our recently acquired Beaumont Terminal, which provides water access and creates additional optionality for supplying refineries on the East Coast, including Bayway,” a spokesperson for Phillips 66 told The Bakken magazine.

The ETCOP project will provide crude transport from Illinois to Sunoco Logistics Partners and Phillips 66 storage terminals near Nederland, Texas. The DAPL project will allow shippers to load Bakken crude onto unit trains bound for the East Coast.