Joint venture will launch expansion open season for service to St.
James, Louisiana
HOUSTON & DALLAS & PHILADELPHIA--(BUSINESS WIRE)--Jul. 30, 2015--
Phillips 66 (NYSE: PSX), Energy Transfer Partners, L.P. (NYSE: ETP) and
Sunoco Logistics Partners L.P. (NYSE: SXL) announced that they have
formed a joint venture to construct the Bayou Bridge pipeline that will
deliver crude oil from the Phillips 66 and Sunoco Logistics terminals in
Nederland, Texas, to Lake Charles, Louisiana. The joint venture will
also launch an expansion open season for service to the market hub in
St. James, Louisiana. Phillips 66 holds a 40 percent interest in the
joint venture and Energy Transfer and Sunoco Logistics each hold a 30
percent interest. Sunoco Logistics will be the operator of the system.
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“The Bayou Bridge pipeline, combined with the storage and logistics
capabilities of our Beaumont Terminal, provides enhanced opportunities
to deliver North American heavy and light crudes into the Louisiana
market that is heavily dependent today on marine and rail delivery of
crude oil,” said Greg Garland, chairman and CEO of Phillips 66. “The
pipeline also complements other pipeline projects we have underway to
deliver Bakken crude oil to the Gulf Coast.”
“Energy Transfer is excited to be part of the Bayou Bridge pipeline with
our two joint venture partners,” said Lee Hanse, executive vice
president of Energy Transfer Partners. “This project is the logical next
step in our development of logistical infrastructure to move crude oil
to market centers across the U.S., and we believe that it will be a
critical conduit for our shippers to transport multiple grades of crude
oil to the major refining market in Louisiana.”
“We are pleased to partner with Energy Transfer and Phillips 66 on the
Bayou Bridge pipeline,” said Michael Hennigan, president and CEO of
Sunoco Logistics. “We believe being connected to our 25 million barrel
Nederland crude terminal on the Gulf Coast greatly benefits this
project. Our extensive pipeline system connects our West Texas Permian,
southern Oklahoma, Granite Wash, Eaglebine and East Texas systems to our
Nederland terminal and now will have enhanced capability to further
deliver crude barrels eastward on the Bayou Bridge pipeline into
Louisiana.”
Construction is underway on the Nederland to Lake Charles segment of the
pipeline, which will be 30-inch diameter and is expected to begin
commercial operations in the first quarter of 2016. The companies will
also launch a binding expansion open season to assess additional shipper
interest for service with connectivity to existing terminal
infrastructure and refineries in and around the St. James area. The
results of the expansion open season will be used to determine the size
of the pipeline to St. James, which has a forecasted in-service date of
the second half of 2017.
The binding expansion open season will commence in the third quarter of
2015. Bona fide potential shippers that would like to receive copies of
the expansion open season documents, the throughput and deficiency
agreement, and proposed tariffs must first sign a confidentiality
agreement. More information about the open season will be available on
the ETP website at www.energytransfer.com/ops_lc_sj.aspx
upon commencement of the open season or by email request to lc_sj@energytransfer.com.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company.
With a portfolio of Midstream, Chemicals, Refining, and Marketing and
Specialties businesses, the company processes, transports, stores and
markets fuels and products globally. Phillips 66 Partners, the company's
master limited partnership, is an integral asset in the portfolio.
Headquartered in Houston, the company has 14,000 employees committed to
safety and operating excellence. Phillips 66 had $49 billion in assets
as of March 31, 2015. For more information, visit www.phillips66.com
or follow us on Twitter @Phillips66Co.
About Energy Transfer Partners
Energy Transfer Partners, L.P. (NYSE: ETP) is a master limited
partnership owning and operating one of the largest and most diversified
portfolios of energy assets in the United States. ETP’s subsidiaries
include Panhandle Eastern Pipe Line Company, LP (the successor of
Southern Union Company) and Lone Star NGL LLC, which owns and operates
natural gas liquids storage, fractionation and transportation assets. In
total, ETP currently owns and operates more than 62,000 miles of natural
gas and natural gas liquids pipelines. ETP also owns the general
partner, 100% of the incentive distribution rights, and approximately
67.1 million common units in Sunoco Logistics Partners L.P. (NYSE: SXL),
which operates a geographically diverse portfolio of crude oil and
refined products pipelines, terminalling and crude oil acquisition and
marketing assets. ETP owns 100% of Sunoco, Inc. and 100% of Susser
Holdings Corporation. Additionally, ETP owns the general partner, 100%
of the incentive distribution rights and approximately 44% of the
limited partner interests in Sunoco LP (formerly Susser Petroleum
Partners LP) (NYSE: SUN), a wholesale fuel distributor and convenience
store operator. ETP’s general partner is owned by Energy Transfer
Equity, L.P. (NYSE: ETE). For more information, visit the Energy
Transfer Partners, L.P. website at www.energytransfer.com.
About Sunoco Logistics
Sunoco Logistics Partners L.P. (NYSE: SXL), headquartered in
Philadelphia, is a master limited partnership that owns and operates a
logistics business consisting of a geographically diverse portfolio of
complementary crude oil, refined products, and natural gas liquids
pipeline, terminalling and acquisition and marketing assets which are
used to facilitate the purchase and sale of crude oil, refined products,
and natural gas liquids. SXL’s general partner is a consolidated
subsidiary of Energy Transfer Partners, L.P. (NYSE: ETP). For more
information, visit the Sunoco Logistics Partners L.P. web site at www.sunocologistics.com.
Forward-Looking Statements
This press release may include certain statements concerning
expectations for the future that are forward-looking statements as
defined by federal law. Such forward-looking statements are subject to a
variety of known and unknown risks, uncertainties, and other factors
that are difficult to predict and many of which are beyond management’s
control. An extensive list of factors that can affect future results are
discussed in the Annual Reports on Form 10-K and other documents filed
by Phillips 66, Energy Transfer and Sunoco Logistics from time to time
with the Securities and Exchange Commission. Phillips 66, Energy
Transfer and Sunoco Logistics undertake no obligation to update or
revise any forward-looking statement to reflect new information or
events.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150730006710/en/
Source: Phillips 66 and Energy Transfer Partners, L.P. and Sunoco Logistics Partners L.P.
Phillips 66
Investor Relations:
Kevin Mitchell,
832-765-2297
kevin.mitchell@p66.com
or
Media
Relations:
Dennis Nuss, 832-765-1850
dennis.h.nuss@p66.com
or
Energy
Transfer
Investor Relations:
Energy Transfer
Brent
Ratliff, 214-981-0700
or
Media Relations:
Granado
Communications Group
Vicki Granado, 214-599-8785
214-498-9272
(cell)
or
Sunoco Logistics
Investor Relations:
Peter
Gvazdauskas, 215-977-6322
or
Media Relations:
Jeff
Shields, 215-977-6056