Phillips 66 Partners LP owns, operates, develops and acquires primarily fee-based midstream assets. Phillips 66 Partners GP LLC serves as the general partner of the company.
The company’s operations consist of crude oil, refined petroleum products and natural gas liquids (NGL) transportation, terminaling, processing and storage assets in the United States. It conducts its operations through both wholly owned and joint venture operations.
The company primarily generates revenue by providing fee...
Phillips 66 Partners LP owns, operates, develops and acquires primarily fee-based midstream assets. Phillips 66 Partners GP LLC serves as the general partner of the company.
The company’s operations consist of crude oil, refined petroleum products and natural gas liquids (NGL) transportation, terminaling, processing and storage assets in the United States. It conducts its operations through both wholly owned and joint venture operations.
The company primarily generates revenue by providing fee-based transportation, terminaling, processing, storage and fractionation services to Phillips 66 (the company’s consolidated subsidiaries) and other customers. Its equity affiliates primarily generate revenue from transporting and terminaling crude oil, refined petroleum products and NGL.
The company has entered into long-term, fee-based commercial agreements with Phillips 66 to provide transportation, terminaling, processing, storage, stevedoring, fractionation, and rail terminal services.
Developments
The company owns a 25% interest in the South Texas Gateway Terminal, which connects to the Gray Oak Pipeline in Corpus Christi, Texas. The first dock of the marine export terminal began crude oil export operations in July 2020. The second dock commenced crude oil export operations in the fourth quarter of 2020. In the first quarter of 2021, the South Texas Gateway terminal commissioned additional storage capacity, bringing the total capacity to 8.6 million barrels and marking the completion of the final construction phase. The marine export terminal has two deepwater docks with up to 800,000 BPD of export capacity.
The company constructs the C2G Pipeline, a 16 inch ethane pipeline that connects its Clemens Caverns storage facility to petrochemical facilities in Gregory, Texas, near Corpus Christi. The pipeline began commercial operations in the fourth quarter of 2021 and is supported by long-term commitments.
In the first half of 2021, the company exited the Liberty Pipeline project and transferred its ownership interest in the joint venture to the company’s co-venturer.
The company owns a 25% interest in the Dakota Access Pipeline.
Equity Investments
Dakota Access, LLC (Dakota Access) and Energy Transfer Crude Oil Company, LLC (ETCO)
Dakota Access owns a pipeline system that transports crude oil from the Bakken/Three Forks production area in North Dakota to Patoka, Illinois, and ETCO owns a connecting crude oil pipeline system from Patoka to Nederland, Texas. These two pipeline systems collectively form the Bakken Pipeline system, which is operated by a co-venturer.
Gray Oak Pipeline, LLC
Gray Oak Pipeline, LLC was formed to develop and construct the Gray Oak Pipeline, which transports crude oil from the Permian and Eagle Ford to Texas Gulf Coast destinations that include Corpus Christi, Texas, and the Sweeny area, including the Phillips 66 Sweeny Refinery. It has a consolidated holding company that owns 65% of Gray Oak Pipeline, LLC.
Liberty Pipeline LLC (Liberty)
In February 2020, the company entered into a Purchase and Sale Agreement with Phillips 66 Project Development Inc. (Phillips 66 PDI) to acquire its 50% interest in the Liberty Pipeline joint venture.
In April 2021, the company transferred its 50% ownership interest in Liberty to the company’s co-venturer for cash and certain pipeline assets.
Bayou Bridge Pipeline, LLC (Bayou Bridge)
Bayou Bridge is a joint venture that owns a pipeline that transports crude oil from Nederland, Texas, to St. James, Louisiana. The Bayou Bridge Pipeline is operated by the company’s co-venturer.
DCP Sand Hills Pipeline, LLC (Sand Hills)
Sand Hills is a joint venture with DCP Partners that owns an NGL pipeline system that extends from the Permian Basin and Eagle Ford to facilities along the Texas Gulf Coast and the Mont Belvieu, Texas market hub. The Sand Hills Pipeline system is operated by DCP Partners.
DCP Southern Hills Pipeline, LLC (Southern Hills)
Southern Hills is a joint venture with DCP Partners that owns an NGL pipeline system that extends from the Midcontinent region to the Mont Belvieu market hub. The Southern Hills Pipeline system is operated by DCP Partners.
Explorer Pipeline Company (Explorer)
Explorer owns and operates a pipeline system that extends from the Texas Gulf Coast to Indiana. The Explorer Pipeline system transports refined petroleum products to more than 70 major cities in 16 U.S. states.
Paradigm Pipeline LLC (Paradigm)
Paradigm is a joint venture that owns the Sacagawea pipelines and Keene Terminal in North Dakota.
Phillips 66 Partners Terminal LLC (Phillips 66 Partners Terminal)
Phillips 66 Partners Terminal is a joint venture that owns the Palermo Terminal in North Dakota.
South Texas Gateway Terminal LLC (South Texas Gateway Terminal)
In 2018, the company acquired a 25% interest in the South Texas Gateway Terminal under construction by a co-venturer, which connects to the Gray Oak Pipeline in Corpus Christi. The first dock of the marine export terminal began crude oil export operations in 2020. The second dock commenced crude oil export operations in the fourth quarter of 2020. In the first quarter of 2021, the South Texas Gateway terminal commissioned additional storage capacity, bringing the total capacity to 8.6 million barrels and marking the completion of the final construction phase.
South Texas Gateway Terminal commenced primary operations in the fourth quarter of 2020 and ceased being a variable interest entity (VIE).
STACK Pipeline LLC (STACK)
STACK is a joint venture that owns and operates a crude storage terminal and a common carrier pipeline that transports crude oil from the Sooner Trend, Anadarko Basin, Canadian and Kingfisher counties play in northwestern Oklahoma to Cushing, Oklahoma.
Major Customer
Phillips 66 accounted for 97% of the company’s total operating revenues in the year ended December 31, 2021. Through its wholly owned and joint venture operations, the company provides crude oil, refined petroleum products and NGL pipeline transportation, terminaling and storage, and crude oil gathering, NGL fractionation, crude oil processing, and rail-unloading services to Phillips 66 and other related parties.
Seasonality
The volumes of crude oil, refined petroleum products and NGL transported in the company’s wholly owned and joint venture pipelines, stored in its terminals, rail racks and storage facilities and processed through the company’s fractionator and processing units are directly affected by the level of supply and demand for crude oil, refined petroleum products and NGL in the markets served directly or indirectly by its assets. The effects of seasonality on the company’s cash flows should be substantially mitigated through the use of fee-based commercial agreements that include minimum volume commitments.
Regulations
The Federal Energy Regulatory Commission (FERC) regulates interstate transportation on the company’s common carrier pipeline systems under the Interstate Commerce Act (ICA), the Energy Policy Act of 1992 (EPAct 1992) and the rules and regulations promulgated under those laws.
The company is subject to regulation by the United States Department of Transportation (DOT) under the Hazardous Liquid Pipeline Safety Act of 1979 (HLPSA). It is also subject to the Pipeline Safety, Regulatory Certainty and Job Creation Act of 2011, which increased penalties for safety violations, established additional safety requirements for newly constructed pipelines, and required studies of certain safety issues that could result in the adoption of new regulatory requirements for existing pipelines.
The company conducts all cathodic protection work in accordance with National Association of Corrosion Engineers standards.
The company’s operations are subject to regulations promulgated by the U.S. Occupational Safety and Health Administration (OSHA), DOT, and comparable state and local regulations.
The company is also subject to Department of Homeland Security Chemical Facility Anti-Terrorism Standards, which are designed to regulate the security of high-risk chemical facilities, the Transportation Security Administration’s Pipeline Security Guidelines, and other comparable state and local regulations.
Environmental Regulations
The company is subject to the Federal Clean Air Act (FCAA) and its regulations and comparable state and local statutes and regulations in connection with air emissions from its operations.
The company also generates solid wastes, including hazardous wastes, which are subject to the requirements of the Resource Conservation and Recovery Act (RCRA) and comparable state statutes.
Regulations under the Water Pollution Control Act of 1972 (Clean Water Act), Oil Pollution Act of 1990 (OPA 90), and comparable state laws impose regulatory burdens on the company’s operations. The Clean Water Act requires the company to maintain Spill Prevention Control and Countermeasure (SPCC) plans at majority of its facilities. The company maintains various discharge permits as required under the National Pollutant Discharge Elimination System program of the Clean Water Act and has implemented systems to oversee its compliance efforts.
The company is subject to requirements promulgated by OSHA and comparable state statutes that regulate the protection of the health and safety of workers. The company is in substantial compliance with the Endangered Species Act.
History
Phillips 66 Partners LP, a Delaware limited partnership, founded in 2013. The company was incorporated in 2013.
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