Phillips 66 to Proceed with Cross-Channel Connector Project
Successful Open Season Concluded
HOUSTON--(BUSINESS WIRE)--Phillips 66 Pipeline LLC, a wholly owned subsidiary of Phillips 66 (NYSE: PSX), will proceed with developing the Cross-Channel Connector project. This project will expand the capacity to transport refined petroleum products across the Houston Ship Channel via pipeline. The company completed a successful open season for the Cross-Channel Connector after receiving shipper commitments to utilize the additional capacity. In addition, Phillips 66 Pipeline LLC received positive response to a potential Phase 2 of the project and is proceeding with an evaluation of this expansion.
“The Cross-Channel Connector project is a key investment to help us leverage our infrastructure and the opportunities of the North American energy renaissance.”
“Transportation at Phillips 66 is part of our growing Midstream business,” said Debbie Adams, president, Phillips 66 Transportation. “The Cross-Channel Connector project is a key investment to help us leverage our infrastructure and the opportunities of the North American energy renaissance.”
The Cross-Channel Connector project leverages existing assets and will combine a reactivated pipeline under the Houston Ship Channel along with the expansion of an active line in Pasadena. The company plans to connect to Magellan’s refined product pipeline which will allow the Cross-Channel Connector to transport refined petroleum products from the south side of the Houston Ship Channel to the Magellan Midstream Partners and Kinder Morgan Energy Partners systems on the north side of the channel at Galena Park and East Houston.
The company anticipates the project could be complete as early as the fourth quarter of 2014, subject to the receipt of necessary permits and regulatory approvals. The Cross-Channel Connector is expected to have an initial system capacity of up to 180,000 barrels per day. The Phase 2 expansion could add an additional 50,000 barrels per day of capacity.
About Phillips 66
Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. This integrated portfolio enables Phillips 66 to capture opportunities in the changing energy landscape. Headquartered in Houston, the company has 13,500 employees who are committed to operating excellence and safety. Phillips 66 had $51 billion of assets as of Sept. 30, 2013. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
This press release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although Phillips 66 (hereinafter referred to as the “company”) believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond the company’s control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what the company anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements are described in the filings that the company makes with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than as described. All forward-looking statements in this release are made as of the date hereof and the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.