Phillips 66 has formed a joint venture with Energy Transfer Partners LP to develop the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) projects.
Energy Transfer holds a 75% interest in each joint venture and will operate both pipeline systems. Phillips 66 owns the remaining 25% interests and will fund its proportionate share of the construction costs. The DAPL and ETCOP projects are expected to begin commercial operations in late 2016.
Based on contractual commitments to date, DAPL is expected to deliver in excess of 450,000 bpd of crude oil from the Bakken/Three Forks production area in North Dakota to market centers in the Midwest. DAPL will provide shippers with access to Midwest refineries, unit-train rail-loading facilities for deliveries to East Coast refineries, and the Gulf Coast market through an interconnection in Patoka, IL with ETCOP. ETCOP will provide crude oil transportation service from the Midwest to the Sunoco Logistics Partners and Phillips 66 storage terminals in Nederland, TX.
In September, Energy Transfer launched a binding Expansion Open Season to assess additional interest in transportation service on DAPL and ETCOP above those levels previously announced. Subject to the terms and conditions of the Expansion Open Season, potential shippers will also have the opportunity to secure expansion transportation service from the Bakken/Three Forks production area to the Midwest and Gulf Coast, as well as to the Cushing hub in Oklahoma.