Energy Transfer Equity (ETE), Energy Transfer Partners (ETP) (collectively Energy Transfer) and Phillips 66 have formed two joint ventures (JVs) to develop the Dakota Access Pipeline (DAPL) and Energy Transfer Crude Oil Pipeline (ETCOP) projects.
Energy Transfer holds a 75% interest in each JV and will operate the two pipeline systems.
PhilliETCOP will provide crude oil transportation service from the Midwest to the Sunoco Logistics Partners and Phillips 66’s Nederland storage terminals in Texas.ps 66 owns the rest of the stakes and will fund its share of the construction costs.
DAPL is estimated to deliver more than 450,000 barrels per day of crude oil from the Bakken/Three Forks production area in North Dakota to market centres in the Midwest.
Shippers will have access to Midwestern refineries, unit-train rail loading facilities for deliveries to East Coast refineries, and the Gulf Coast market via an interconnection in Patoka, Illinois, with ETCOP.
The DAPL and ETCOP projects are expected to start commercial operations in the fourth quarter of 2016.
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By GlobalDataETE chairman and ETP chairman and CEO Kelcy Warren said: "We look forward to working with Phillips 66 to build this much-needed pipeline infrastructure to link rapidly growing supplies of domestically produced light crude oil in the Bakken/Three Forks play to refineries throughout the country."
Phillips 66 chairman and CEO Greg Garland said: "These joint-venture projects will allow Phillips 66 to increase its access to advantaged North American crude oil and add to the momentum we are building in our Midstream business."
Image: The DAPL and ETCOP projects are expected to start commercial operations in the fourth quarter of 2016. Photo: Courtesy of puttsk/FreeDigitalPhotos.net.
