Phillips 66 Partners to acquire assets from Phillips 66
Phillips 66 Partners LP has acquired Phillip 66’s Gold Product Pipeline System and Medford Spheres, two newly constructed refinery-grade propylene storage spheres, for $700 million. It’s the partnerships’ first acquisition since its initial public offering last July.
The Gold Line System consists of a 681-mile products pipeline system that extends from the Phillips 66-operated refinery in Borger, Tex., to Cahokia, Ill., with access to the Phillips 66 refinery in Ponca City, Okla., as well as two parallel 54-mile lateral lines from Paola, Kan., to Kansas City, Kan.
The system has a maximum throughput capacity of 132,000 b/d and includes four terminals respectively at Wichita, Kan., Kansas City, Kan., Jefferson City, Mo., and Cahokia, Ill., with 172,000 b/d of aggregate throughput capacity and 4.3 million bbl of storage capacity.
The Medford Spheres in Medford, Okla., have a total working capacity of 70,000 bbl and are scheduled to start operation Mar. 1. It will serve as an outlet for delivery of refinery-grade propylene from the Phillips 66 refinery in Ponca City, Okla., through interconnections with third-party pipelines, to Mont Belvieu, Tex.
Phillips 66 and the partnership will enter into transportation, storage, and terminaling agreements that include minimum throughput volume commitments, with terms ranging from 5-10 years. The minimum volume commitments account for more than 80% of expected throughput volumes.
