Phillips 66 Partners LP has agreed to acquire a natural gas liquids logistics system in southeast Louisiana owned by Chevron Corp.
The system covers 500 miles of pipelines and a storage cavern connecting multiple fractionation facilities, refineries, and a petrochemical facility. The deal is expected to close in the fourth quarter.
The assets include:
• The TENDS pipeline system, a 300-mile, bidirectional NGL pipeline system connected to third-party fractionators, refineries, including the Phillips 66 Alliance refinery, and a petrochemical plant.
• The VP pipeline-EP pipeline, comprising 200 miles of regulated pipelines that carry raw NGLs from a third-party gas processing plant to pipeline and fractionation infrastructure.
• The Sorrento Cavern, a salt dome cavern with 1.5 million bbl of NGL storage capacity in Ascension Parish.
“This acquisition will expand the partnership’s NGL footprint into the Louisiana market,” commented Tim Taylor, Phillips 66 Partners president. “The assets are strategically located and connect offshore production, local refineries, and petrochemical facilities in south Louisiana while providing significant opportunities for fee-based growth.”