By Business Wire, March 20, 2013, 08:00:00 AM EDT
HOUSTON--(BUSINESS WIRE)--
As an energy manufacturing company, Phillips 66 (NYSE:PSX) is helping
to shape the energy revolution in the U.S. by increasing supplies of
cost-advantaged North American crude oil to its U.S. refineries.
Phillips 66 has reached agreements with several logistics providers for
rail loading and terminaling services and a pipeline project, all of
which support a rapidly changing domestic energy landscape and energy
security.
"We are aggressively pursuing increased access to advantaged crudes in
North America by partnering with leading third-party transportation
providers and better leveraging our own system capabilities," said Greg
Garland, Phillips 66 chairman and chief executive officer. "Increasing
our utilization of those advantaged crudes should allow us to capture
significant value in our Refining and Marketing businesses."
Details of the agreements include:
- Enbridge Energy Partners, L.P. (NYSE:EEP) subsidiary Enbridge Rail
(North Dakota) LLC has agreed to a three-year deal for railcar loading
of Bakken shale crude at Enbridge's Berthold, N.D., terminal beginning
in May 2013, with volumes ramping up to 35,000 to 40,000 barrels per
day (BPD) by November. The crude oil will be delivered to Phillips 66
refineries on the West and East Coasts, and the company may also
pursue opportunities to send it to its Gulf Coast refineries.
- Targa Resources Partners LP (NYSE:NGLS) has agreed to provide rail
unloading and barge loading services in Tacoma, Wash., The five-year
agreement, which began in late 2012, allows advantaged U.S. or
Canadian crude oil to be unloaded from railcars at Targa's Tacoma
terminal and transloaded onto barges for delivery to the Phillips 66
Ferndale, Wash., refinery. The facility also allows for delivery into
the San Francisco, Calif., refinery, where crude imported from outside
of North America could be replaced. Currently, the terminal is capable
of receiving manifest rail (individual cars), but as volumes ramp up
it will transition to unit train capability this summer. At full
volume, the delivery capability is estimated to be approximately
30,000 BPD.
- Magellan Midstream Partners, L.P. (NYSE:MMP) has signed an agreement
to transport advantaged crude on Magellan's pipelines near Phillips
66's refinery in Ponca City, Okla. The project will replace West Texas
Intermediate crude from Cushing, Okla., with virgin crude from the
nearby Mississippian Lime play. Small volumes are expected to be
delivered to the refinery by late 2013, with approximately 20,000 BPD
anticipated by the project's completion date in January 2014. Phillips
66 is also investing in its own transportation assets in Oklahoma to
transport an additional 40,000 BPD of Mississippian Lime crude to the
Ponca City Refinery, and at the refinery to accept crude from the
Magellan project.
Phillips 66's general manager, Crude & International Supply Glenn
Simpson, whose group led the way on arranging the agreements, added,
"These business partners give us another important link to increasing
access to advantaged crudes, which continues to be a top priority for
the Phillips 66 team for the foreseeable future."
About Phillips 66
Headquartered in Houston, Phillips 66 is an advantaged downstream energy
company with segment-leading Refining and Marketing (R&M), Midstream and
Chemicals businesses. The company has 13,500 employees worldwide.
Phillips 66's R&M operations include 15 refineries with a net crude oil
capacity of 2.2 million barrels per day, 10,000 owned or supplied
branded marketing outlets, and 15,000 miles of pipeline systems. The
Midstream segment includes Phillips 66's 50 percent interest in DCP
Midstream, LLC, one of the largest natural gas gatherers and processors
in the United States, with 7.2 billion cubic feet per day of gross
natural gas processing capacity. Phillips 66's Chemicals business is
conducted through its 50 percent interest in Chevron Phillips Chemical
Company LLC, one of the world's top producers of olefins and polyolefins
with more than 30 billion pounds of net annual chemicals processing
capacity across its product lines. For more information, visit www.phillips66.com
or follow us on Twitter @Phillips66Co.
Source: Phillips 66