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Phillips 66 Partners to acquire midstream assets

May 5, 2016 By    

Phillips 66 Partners LP reached an agreement with Phillips 66 to acquire the Standish Pipeline and the remaining 75 percent interest in Phillips 66 Sweeny Frac LLC, which owns the newly constructed Sweeny Fractionator One and Clemens Caverns storage facility.

The agreement is valued at $775 million, Phillips 66 Partners says.

According to a press release, the Standish Pipeline is a refined petroleum products pipeline system extending from Phillips 66’s Ponca City Refinery in Ponca City, Okla., to Phillips 66 Partners’ North Wichita Terminal in Wichita, Kan.

Sweeny Fractionator One is a 100,000-barrels-per-day natural gas liquids (NGL) fractionator located within the Phillips 66 Sweeny Refinery complex in Old Ocean, Texas.

The Clemens Caverns storage facility is located about 15 miles southeast of the Sweeny Refinery and includes five newly developed caverns that will have storage capacity of about 7.5 million barrels of Y-grade NGL, propane and butane, with the capability for future capacity expansion.

Earlier this year, Phillips 66 Partners acquired a 25 percent interest in Sweeny Frac LLC. The partnership expects to fund its most recent acquisition with a combination of newly issued Phillips 66 Partners units to Phillips 66, as well as the assumption of notes payable to Phillips 66. The acquisition is expected to close sometime in May, according to the company.

About the Author:

Kevin Yanik was a senior editor at LP Gas Magazine.

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