Phillips 66 Partners LP has agreed with Phillips 66 to acquire the Standish Pipeline and remaining 75% interest in Phillips 66 Sweeny Frac LLC, which owns the newly constructed Sweeny Fractionator One and Clemens Caverns storage facility, for $775 million.
The partnership earlier this year acquired 25% interest in Sweeny Frac (OGJ Online, Feb. 18, 2016). Sweeny Fractionator One is a 100,000-b/d NGL fractionator within the Phillips 66 Sweeny refinery complex in Old Ocean, Tex.
The Clemens Caverns storage facility, 15 miles southeast of the Sweeny refinery, includes five newly developed caverns that will have storage capacity of 7.5 million bbl of Y-grade NGL, propane, and butane, with the capability for future capacity expansion.
Standish Pipeline is a refined petroleum products pipeline system extending from Phillips 66’s Ponca City refinery in Ponca City, Okla., to the partnership’s North Wichita terminal in Wichita, Kan.
“The addition of the Standish Pipeline is consistent with our plan to build out our current systems that are strategically integrated with Phillips 66 refineries,” explained Greg Garland, Phillips 66 Partners chairman and chief executive officer.
Phillips 66 and the partnership are parties to fractionation and storage agreements, each with a 10-year term, that include a minimum fractionation volume commitment for Sweeny Fractionator One and minimum storage commitments at the Clemens Caverns storage facility.