Phillips 66 and Bridger Pipeline will construct a new crude oil pipeline to Cushing, Oklahoma.
Separate from Phillips’ other newly announced pipeline venture at Cushing with Plains All American Pipeline, the Liberty Pipeline will provide crude oil transportation service from the Rockies and Bakken production areas to Oklahoma, where it can then be shipped to other destinations.
Phillips and Bridger will form an equal partnership joint venture (JV) for the project, known as the Liberty Pipeline LLC, and shipping commitments for the pipeline have already been made.
Phillips will lead project construction and operate the pipeline, which is expected to cost approximately US$1.6 billion.
Phillips Chair and CEO Greg Garland said the pipeline was a “great opportunity” for producers in the Bakken and Rockies areas.
“The pipeline adds to our integrated infrastructure network that serves the key shale oil producing regions with connectivity to major Gulf Coast market centres,” he said.
“Our pipeline network has strategic alignment with our Central Corridor and Gulf Coast refineries, further enhancing value across our assets.”
Bridger President Hank True said the project was an important milestone for the company.
“Our commitment to the Liberty Pipeline will give producers confidence to grow oil production in these important regions,” he said.
The pipeline is expected to operational in the first quarter of 2021.
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