Phillips 66 Pipeline LLC, a wholly owned subsidiary of
) announced that it will expand the capacity to transport refined
petroleum products across the Houston Ship Channel via pipeline.
Earlier 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
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The company anticipates that the expansion project will be
complete by the fourth quarter of 2014. The Cross-Channel
Connector is expected to have a capacity of up to 180,000 barrels
per day. The Phase 2 expansion could add an additional 50,000
barrels per day of capacity.
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 of the
Houston Ship Channel to
Magellan Midstream Partners
Kinder Morgan Energy Partners LP
) on the north side of the channel at Galena Park and East
Phillips 66, an independent publicly traded company, was formed
after the spin-off of the refining/sales business of
) in May 2012. The move resulted in the creation of the largest
refining company in the U.S. and the largest exploration and
production player based on oil and gas reserves.
Phillips 66, is headquartered in Houston, Texas. In addition to
the refining, marketing and transportation businesses, the
company has emerged as an integrated downstream company with most
of the Midstream and Chemicals segments, as well as power
generation and certain technology operations included in the
Emerging Businesses segment.
Phillips 66 currently holds a Zacks Rank #3 (Hold), implying that
it is expected to perform in line with the broader U.S. equity
market over the next one to three months.