Phillips 66 Partners has entered into an agreement to acquire a natural gas liquids (NGL) logistics system in southeast Louisiana currently owned by Chevron for undisclosed sum.
The system comprises nearly 500 miles of pipelines and a storage cavern connecting multiple fractionation facilities, refineries and a petrochemical facility.
The acquisition includes an approximately 300-mile TENDS pipeline system, which is a bidirectional NGL pipeline system connected to third-party fractionators, refineries.
Through the acquisition, Phillips 66 will also gain access to a nearly 200-miles of regulated pipelines that carry raw NGLs from a third-party natural gas processing plant to pipeline and fractionation infrastructure.
Phillips 66 Partners president said: “This acquisition will expand the Partnership’s NGL footprint into the Louisiana market. The assets are strategically located and connect offshore production, local refineries and petrochemical facilities in south Louisiana while providing significant opportunities for fee-based growth.”
The deal also includes acquisition of Sorrento Cavern, a salt dome cavern with nearly 1.5 million barrels of NGL storage capacity located in Ascension Parish.
Houston, Texas-headquartered Phillips 66 plans to finance the transaction with cash and borrowings under the Partnership’s revolving credit facility.
The transaction is subject to regulatory approvals and is expected to be completed in the fourth quarter of 2016.
Earlier this month, Phillips 66 entered into an agreement to sell its Whitegate oil refinery in Ireland to Canada’s Irving Oil.
However, the financial details of the transaction were not disclosed.
The Whitegate refinery in Cork, which is owned and operated by Phillips66, is the only refinery on the island of Ireland and it supplies up to 40% of the main products on the market.