HomeNews$1.6 Billion Liberty Pipeline Construction to Proceed Under Phillips 66, Bridger JV

$1.6 Billion Liberty Pipeline Construction to Proceed Under Phillips 66, Bridger JV

6/11/2019

(P&GJ) – Phillips 66 and Bridger Pipeline announced that they are proceeding with construction of the $1.6 billion Liberty Pipeline from the Rockies and Bakken production areas to Cushing, Okla.

(photo: Phillips 66)

The 24-inch pipleline, to be built under  new 50-50 joint venture between the two companies, will provide access via Cushing to multiple Gulf Coast destinations, including Houston, Corpus Christi and Ingleside, Texas. Initial service on the pipeline is targeted to commence as early as the first quarter of 2021, subject to receipt of applicable permits and regulatory approvals.

Liberty is one of two new joint-venture pipeline projects sanctioned this week by Phillips 66 with an estimated combined cost of $4.1 billion.  On Monday, it announced plans to move forward with Plains All American Pipeline on construction of the Red Oak Pipeline system, which will transport crude oil from the Permian Basin to the same Gulf Coast destinations via the Cushing hub.

Phillips 66 will lead project construction on behalf of the joint venture and will operate the pipeline. Where feasible, Liberty will utilize existing pipeline and utility corridors and advanced construction techniques to limit environmental and community impact, the companies said.

“The Liberty Pipeline is an important undertaking on the part of our company to ensure that oil from Wyoming, the Rockies and the Bakken can get to markets in the U.S. and around the world,” said Hank True, president of Bridger Pipeline LLC. “Our commitment to the Liberty Pipeline will give producers confidence to grow oil production in these important regions.”

According to Energy Web Atlas (EWA), Liberty Pipeline was designed as a 1,350-mile project with a capacity of 350,000 bpd.

The project is underpinned with long-term shipper volume commitments.

The joint venture plans to hold a supplemental binding open season to be announced at a later date that will enable additional shippers to enter into long-term transportation services agreements.

“The Liberty Pipeline presents us with a great opportunity to serve producers in the growing Bakken and Rockies production areas,” said Greg Garland, chairman and CEO of Phillips 66. “The pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centers. Our pipeline network has strategic alignment with our Central Corridor and Gulf Coast refineries, further enhancing value across our assets.”

Related News

Comments

{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}