Phillips 66 acquires large stake in major Bakken pipeline

By Phillips 66 | February 27, 2020

Phillips 66 Partners LP has reached agreement with Phillips 66 to acquire its 50 percent interest in the Liberty Pipeline project for approximately $75 million. Phillips 66 Partners plans to fund the transaction through a combination of cash on hand and the revolving credit facility. The transaction is expected to close on March 2, 2020, with an effective date of March 1, 2020.

“The Liberty Pipeline is a great addition to the Phillips 66 Partners portfolio,” said Greg Garland, Phillips 66 Partners’ chairman and CEO. “It is a strong organic project and continues our strategy of growing PSXP with stable fee-based cash flows, supported by long-term volume commitments. Phillips 66 Partners is well positioned to execute this pipeline project on the heels of successfully starting up the Gray Oak Pipeline. We remain committed to maintaining a strong financial position and disciplined capital allocation, investing in projects with attractive returns and delivering growing distributions to unitholders.”

The 24-inch Liberty Pipeline will provide crude oil transportation service from the Rockies and Bakken production areas to Cushing, Oklahoma. The pipeline is underpinned with long-term volume commitments. Service on the pipeline is targeted to commence in the first half of 2021. The cost of the pipeline is expected to be approximately $1.6 billion, on a gross basis, or $800 million net to the Partnership.