The pipeline is designed to supply crude oil from the Phillips 66 and Sunoco Logistics terminals in Nederland, Texas, to Lake Charles, Louisiana.
Energy Transfer and Sunoco Logistics each hold 30% stake in the joint venture, while Phillips 66 owns the remaining.

Work is currently being carried out on the pipeline, which is planned to be commissioned in the first quarter of 2016.

Energy Transfer Partners executive vice-president Lee Hanse said: "This project is the logical next step in our development of logistical infrastructure to move crude oil to market centers across the US, and we believe that it will be a critical conduit for our shippers to transport multiple grades of crude oil to the major refining market in Louisiana."

A binding expansion open season will be launched by the joint venture later this year, to review additional shipper interest for service to the market hub in St. James, Louisiana.

Consequently, the partners will be able to determine the size of the pipeline to St. James. This pipeline is scheduled to be commissioned in the second half of 2017.

Sunoco Logistics president and CEO Michael Hennigan said: "We believe being connected to our 25 million barrel Nederland crude terminal on the Gulf Coast greatly benefits this project.

"Our extensive pipeline system connects our West Texas Permian, southern Oklahoma, Granite Wash, Eaglebine and East Texas systems to our Nederland terminal and now will have enhanced capability to further deliver crude barrels eastward on the Bayou Bridge pipeline into Louisiana."