Phillips 66 Partners LP has reached agreement with Phillips 66 to acquire its 50% interest in the Liberty Pipeline project for approximately $75 million. The transaction is expected to close on March 2, 2020, with an effective date of March 1, 2020.
“The Liberty Pipeline is a great addition to the Phillips 66 Partners portfolio,” said Greg Garland, Phillips 66 Partners’ chairman and CEO. “It is a strong organic project and continues our strategy of growing PSXP with stable fee-based cash flows, supported by long-term volume commitments. Phillips 66 Partners is well positioned to execute this pipeline project on the heels of successfully starting up the Gray Oak Pipeline. We remain committed to maintaining a strong financial position and disciplined capital allocation, investing in projects with attractive returns and delivering growing distributions to unitholders.”
The Liberty Pipeline will be a new, approximately 700-mile-long, pipeline of up to 24 inches in diameter transporting light crude oil from Guernsey, Wyoming to Cushing, Oklahoma. Service on the pipeline is targeted to commence in the first half of 2021.