Phillips 66 Partners LP has agreed to acquire 25% controlling interest in Phillips 66 Sweeny Frac LLC, owner of the newly constructed Sweeny Fractionator One and Clemens Caverns storage facility, from Phillips 66 Co. for $236 million. The deal is expected to close in early March.
Sweeny Fractionator One is a 100,000-b/d NGL fractionator near Phillips 66’s 247,000-b/d Sweeny refinery in Old Ocean, Tex. Startup of the unit was reported in December (OGJ Online, Dec. 8, 2015).
The Clemens Caverns storage facility is 15 miles southeast of the Sweeny refinery, and includes five newly developed caverns that will have storage capacity of 7.5 million bbl of Y-grade NGL, propane, and butane, with the capability for future capacity expansion.
“This acquisition expands and diversifies our fee-based portfolio into natural gas liquids fractionation and storage,” explained Greg Garland, Phillips 66 Partners chairman and chief executive officer.
In connection with the deal, Phillips 66 will enter into fractionation and storage agreements, each with a 10-year term, that include a minimum fractionation volume commitment for Sweeny Fractionator One and minimum storage commitments at the Clemens Caverns storage facility.