August 3, 2015 [OPIS] - Phillips 66, Energy Transfer Partners LP and Sunoco Logistics Partners LP said on Thursday they formed a joint venture to build a pipeline that will deliver crude oil from terminals in Nederland, Texas to Lake Charles, Louisiana.
In addition to the Bayou Bridge Pipeline, the joint venture will also assess customer interest for an expanded service to the market hub in St James, La. Phillips 66 owns 40% of the venture, with Energy Transfer and Sunoco Logistics each holds 30% interest, and Sunoco Logistics will be the operator of the system, they said.
The companies said construction is currently underway on the segment of the pipeline from Nederland to Lake Charles, which will have a 30-inch diameter and is expected to begin commercial operations in Q1 of 2006.
They will also launch a binding expansion open season in Q3 2015 to assess additional shipper interest for service connecting existing terminal infrastructures and refineries in and around the St James area. The results of the open season will be used to determine the size of the possible pipeline expansion to St James, which has an expected service date of H2 2017, the companies said.
“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…” Greg Garland, chairman and CEO of Phillips 66 said in a statement. He added that the pipeline also complements the company’s other pipeline projects currently underway to deliver Bakken crude oil to the Gulf Coast.
More information about the expansion open season to St James area will be provided on ETP’s website.
