Phillips 66, Energy Transfer Partners and Sunoco Logistics Partners have formed a joint venture to construct the Bayou Bridge pipeline connecting terminals between Texas and Louisiana.
The joint venture will construct the Bayou Bridge pipeline that will deliver crude oil from the Philipps 66 and Sunoco Logistics terminals in Nederland, Texas to Lake Charles, Louisiana.
The joint venture will also launch an expansion open season for service to the market hub in St James, Louisiana.
Sunoco Logistics will be the operator of the system.
Lee Hanse, executive VP of Energy Transfer Partners, says: ‘This project is the logical next step in our development of logistical infrastructure to move crude oil to market centres across the US and we believe that it will be a critical conduit for our shippers to transport multiple grades of crude oil to the major refining market in Louisiana.
Greg Garland, chairman and CEO of Phillips 66 adds: ‘The Bayou Bridge pipeline, combined with the storage and logistics capabilities of our Beaumont Terminal, provides enhanced opportunities to deliver North American heavy and light crudes into the Louisiana market that is heavily dependent today on marine and rail delivery of crude oil.’
Work has already started on the Nederland to Lake Charles segment of the pipeline, which will be 30-inch in diameter. It is expected to begin commercial operations in the first quarter of 2016. The companies will also launch a binding expansion open season to assess additional shipper interest for service with connectivity to existing terminal infrastructure and refineries in and around the St James area.
The results of the expansion open season will be used to determine the size of the pipeline to St James, which has a forecasted in-service date of the second half of 2017.
The binding expansion open season will start in the third quarter of 2015.