Phillips 66 invests $2.2 billion in Permian midstream
HOUSTON, January 7, 2025 – US refiner Phillips 66 has agreed to buy an NGL long-haul pipeline and distribution system asset package from pipeline operator EPIC NGL in a USD 2.2-billion all-cash deal, Phillips 66 announced on Monday.
Phillips 66 will acquire EPIC Y-Grade GP and EPIC Y-Grade, whose assets consist of two fractionators near Corpus Christi, Texas, 560 kilometres of distribution pipelines and a 1,425-kilometre NGL pipeline linking production in the Delaware, Midland and Eagle Ford basins to the acquired fractionators and the Phillips 66 Sweeny Hub.
“This transaction bolsters Phillips 66’s position as a leading integrated downstream energy provider. It optimises our Permian NGL value chain, allows Phillips 66 to provide producers with comprehensive flow assurance and is expected to deliver attractive returns in excess of our hurdle rates,” said Mark Lashier, chairman and CEO of Phillips 66.
The acquired facilities connect Permian production to Gulf Coast refiners, petrochemical companies and export markets. Prior to the transaction, EPIC was in the process of increasing its pipeline capacity to 225,000 bpd and had sanctioned a second expansion to increase capacity to 350,000 bpd.
Photo courtesy of EPIC
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