Phillips 66 sees strong US export demand reviving midstream opportunities
Phillips 66 expects a revival in the US midstream space in 2017, as demand for exports of crude, products and LPGs remain strong, President Tim Taylor said Tuesday.
“We see a resurgence of opportunities in the midstream,” said Taylor, addressing attendees at Credit Suisse’s 22nd Annual Energy Summit in Vail, Colorado. His comments were webcast.
Taylor said Phillips 66 and its midstream master limited partnership, Phillips Energy Partners, continues to find ways to deal with the “nature of market changes,” particularly around growth in exports of both crude and products.
Phillips 66 is a stakeholder in the Dakota Access Pipeline, expected to come online in the second quarter of 2017.
DAPL received its final permit to finish the line in February 2017 following a contentious battle with environmentalists.
Completion of the pipeline will open cheaper transportation for North Dakota’s Bakken crude. The line will carry the light, sweet crude into the Midwest oil hub of Patoka, Illinois, and onward to the US Gulf Coast via the Energy Transfer Crude Oil Pipeline, or ETCOP. Phillips 66 is also a stakeholder in ETCOP.
This will give the landlocked crude port access, opening the door for exports, as well as lower transport costs for East Coast refiners, who pay high rail costs from North Dakota to the East Coast.
Phillips 66 is also working on the completing the Bayou Bridge Pipeline, which will bring Texas crude east to Louisiana. The Beaumont, Texas, to Lake Charles, Louisiana, segment is completed and work is underway connecting the line to St. James, Louisiana.
Written by Janet McGurty, S&P Global – Platts