Phillips 66 Sets Rates for Gray Oak Crude Pipeline

NEW YORK (Reuters) — Phillips 66 Partners LP set spot rates of $4.75 a barrel to ship crude on its new 900,000-barrel-per-day (bpd) Gray Oak crude pipeline within points in Texas, according to a filing this week. 

The company also set rates at $4.75 a barrel to transport crude within Texas for committed shippers.

The rates, set to come into effect by Oct. 25, apply only to accelerated commissioning service estimated to begin on Nov. 10.

It was not immediately clear what rates were for transport to delivery points in the Houston and Corpus Christi, Texas, areas.

Hydrotesting and line fill on the Gray Oak system has been ongoing, market sources said.

Flows on the pipeline are expected to average about 200,000 bpd initially, two traders said. Phillips 66 did not immediately respond to a request for comment.

The Gray Oak pipeline is the biggest of about three new pipelines connecting the Permian basin to the U.S. Gulf Coast and will be the last of the three to begin shipping.

Plains All American’s Cactus II Pipeline and Kinder Morgan’s Gulf Coast Express (GCX) Pipeline both began shipping earlier this year.

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