Phillips 66 Partners has enough commitments to move ahead with construction of its Gray Oak Pipeline to carry crude directly out of West Texas to coastal refineries.
It could be seen as another move that might affect the status of Oklahoma’s Cushing hub as more and more companies are building pipelines to carry out directly to south Texas.
The Gray Oak Pipeline is a joint venture between Phillips 66 and Andeavor with other third parties, including Enbridge, having the option to buy up to 32.75 percent interest.
The new line will transfer crude from west Texas Corpus Christi and the Sweeny and Freeport markets.
Since Phillips 66 obtained enough commitments for the Gray Oak pipeline, it has already opened a second binding open season. And the results of the second open season will determine the specifications, scope and capacity of the line. The first open season indicated the line could transport up to 700,000 bbl a day.