Phillips 66 Partners will acquire Philipps 66’s 50% interest in the Liberty Pipeline project for $75 million.
The 24-inch Liberty Pipeline will provide crude oil transportation service from the Rockies and Bakken production areas to Cushing, Oklahoma. The pipeline is underpinned with long-term volume commitments and service on the pipeline is targeted to commence in the first half of 2021. The cost of the pipeline is expected to be $1.6 billion.
Philipps 66 Partners plans to fund the transaction through a combination of cash on hand and the revolving credit facility. The transaction closed on March 2.
Greg Garland, Phillips 66 Partners’ chairman and CEO, says: ‘The Liberty Pipeline is a great addition to the Phillips 66 Partners portfolio. It is a strong organic project and continues our strategy of growing PSXP with stable fee-based cash flows, supported by long-term volume commitments. Phillips 66 Partners is well positioned to execute this pipeline project on the heels of successfully starting up the Gray Oak Pipeline.
‘We remain committed to maintaining a strong financial position and disciplined capital allocation, investing in projects with attractive returns and delivering growing distributions to unitholders.’