Project Profile
Location: from the Permian Basin to the Texas Gulf Coast region, Texas, USA
Capacity: 700,000 bpd (expandable to 1 million bpd)
Start-up Year: 2019
The pipeline will provide crude transportation from West Texas to the Corpus Christi and Sweeny-Freeport markets. Origination stations will be constructed in Reeves, Loving, Winkler and Crane counties in West Texas, as well as from locations in the Eagle Ford shale production area in South Texas. The pipeline is expected to be placed in service by the end of 2019, and is backed by long-term, third-party, take-or-pay commitments with investment-grade customers.
A second binding open season will be held and will provide an opportunity for additional shippers to enter into transportation services agreements that provide long-term crude oil transportation on the Gray Oak Pipeline. The scope and capacity of the pipeline will be determined by the outcome of the second open season.
Subject to the results of the open season, the Gray Oak Pipeline could transport up to 700,000 bpd or more of crude oil from the Permian Basin to downstream markets. Capacity could ultimately be expanded to approximately 1 million bpd of long-haul takeaway if the pipeline is fully subscribed.
In Corpus Christi, the Gray Oak Pipeline will connect to a new joint venture marine terminal, under development by Buckeye Partners, which will have an initial storage capacity of 3.4 million barrels and is also expected to begin operations by the end of 2019.
Enbridge has an option to purchase up to a 32.75% interest in the joint venture, leaving Phillips 66 with a 42.25% share.
Operators:
Phillips 66 Partners: Operator with 75% interest
Andeavor (taken over by Marathon Petroleum): 25% interest