Phillips 66 Partners LP reached an agreement with Phillips 66 to acquire a 25 percent controlling interest in Phillips 66 Sweeny Frac, which owns the newly constructed Sweeny Fractionator One and Clemens Caverns storage facility, for a total consideration of $236 million.
According to a previous report, Phillips 66 began operations at Sweeny Fractionator One in December 2015. The acquisition is expected to close this month.
The partnership says Phillips 66 Sweeny Frac owns the following assets:
- Sweeny Fractionator One: A 100,000-barrels-per-day natural gas liquids (NGL) fractionator located within the Phillips 66 Sweeny Refinery complex in Old Ocean, Texas.
- Clemens Caverns storage facility: Located within 15 miles of Phillips 66’s Sweeny Refinery, it includes five newly developed caverns that will have a storage capacity of about 7.5 million barrels of Y-grade NGL, propane and butane.
According to the partnership, Phillips 66 will enter into fractionation storage agreements, each with a 10-year term, that include a minimum fractionation volume commitment for Sweeny Fractionator One and a minimum storage volume commitment at the Clemens Caverns storage facility.