Phillips, ETP, Sunoco JV to build, operate Bayou Bridge oil pipeline

Phillips 66, Houston; Energy Transfer Partners LP (ETP), Dallas; and Sunoco Logistics Partners LP, Philadelphia, have formed a joint venture to construct the Bayou Bridge pipeline, which will deliver crude oil from the Phillips 66 and Sunoco Logistics terminals in Nederland, Tex., to Lake Charles, La.

Phillips 66 holds 40% interest in the JV while ETP and Sunoco Logistics each hold 30% interest. Sunoco Logistics will serve as the system’s operator.

Construction is under way on the Nederland-to-Lake Charles segment of the line, which will be 30-in. Commercial operation of the line is expected to begin in first-quarter 2016. The companies also will launch a binding expansion open season to assess additional shipper interest for service with connectivity to existing terminal systems and refineries in and around St. James. The results of the expansion open season will be used to determine the size of the pipeline to St. James, which has a forecasted in-service date of second-half 2017. The binding expansion open season will start in this year’s third quarter.

“The Bayou Bridge pipeline, combined with the storage and logistics capabilities of our Beaumont terminal, provides enhanced opportunities to deliver North American heavy and light crudes into the Louisiana market that is heavily dependent today on marine and rail delivery of crude oil,” said Greg Garland, chairman and chief executive officer of Phillips 66.

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