Developers of two separate pipeline projects have combined forces to move crude oil from the Permian Basin of West Texas to multiple destinations along the Houston Ship Channel.
As construction for the 850-mile Gray Oak Pipeline draws to a finish, a joint venture led by Phillips 66 Partners has teamed up with Houston pipeline operator Kinder Morgan to move crude oil to more destinations.
Under a new agreement between Phillips 66 Partners and Kinder Morgan, customers of the Gray Oak Pipeline will now also be able to use the Kinder Morgan Crude and Condensate Pipeline to move crude oil from Sweeny to terminals along the Houston Ship Channel in Galena Park, Pasadena and Channelview.
Phillips 66 Partners and Kinder Morgan announced on Monday that the two companies have launched a joint open season allowing customers to book joint transportation service along both pipeline networks.
The Gray Oak Pipeline was originally announced as a joint project between Phillips 66 Partners and San Antonio-based refining company Andeavor in December 2017. At the time, Phillips 66 Partners had a 75 percent stake in the 900,000 barrel-per-day pipeline, while Andeavor held 25 percent.
Ohio-based refining company Marathon Petroleum Corp. bought Andeavor and its share of the pipeline project in October.
Canadian pipeline operator Enbridge exercised an option in December to buy a 26.25 percent stake in the Gray Oak Pipeline.
Expected to be in service by the end of 2019, the Gray Oak Pipeline will move crude oil from the Permian Basin and Eagle Ford to storage terminals and refineries in Corpus Christi and Brazoria County.
This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.