Houston-based Phillips 66 Partners will acquire a southeast Louisiana natural gas liquids (NGL) logistics system from Chevron, which includes about 500 miles of pipelines and a storage cavern connecting multiple fractionation facilities.
Among the assets is the 300-mile, bi-directional TENDS Pipeline System, connecting fractionators, refineries – including the Phillips 66 Alliance Refinery – and a petrochemical plant.
Also included in the deal:
- The 200-mile VP Pipeline/EP Pipeline, which carries raw NGLs from a third-party natural gas processing plant to pipeline and fractionation infrastructure.
- Sorrento Cavern, a salt dome cavern with 1.5 MMbbl of NGL storage capacity located in Ascension Parish.
“This acquisition will expand the Partnership’s NGL footprint into the Louisiana market,” said Tim Taylor, Phillips 66 Partners president. “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 transaction is expected to close in the fourth quarter.