Phillips 66 to Raise Rates for Gray Oak Crude Pipeline

NEW YORK (Reuters) — Phillips 66 Partners LP proposed raising tariff rates on its 900,000-barrel-per-day (bpd) Gray Oak crude oil pipeline in Texas, according to a filing on Tuesday. 

The company will increase all committed rates on the roughly 900,000 barrel-per-day line by 2% per year, the filing with the Federal Energy Regulatory Commission (FERC) said. Uncommitted rates would be assessed separately and would amount to increases of around 2%.

The uncommitted rates will be increased by the FERC index factor, while the committed rates have a contractual inflation adjustment factor.

The rates are set to take effect by July 1.

The Gray Oak pipeline is one of the biggest new pipelines connecting the Permian basin, the nation’s largest oil field, to the U.S. Gulf Coast.

It became fully operational last month after a segment was added in the Eagle Ford, Texas, shale region, completing the project.

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