Houston-based Phillips 66 said last week it agreed to divest DCP GCX Pipeline, which owns 25 percent non-operating equity interest in Gulf Coast Express pipeline, to an affiliate of ArcLight Capital Partners for $865 million. The 500-mile Gulf Coast Express transports about 2 billion cubic feet per day of natural gas from Permian Basin to Agua Dulce with a Midland lateral of about 50 miles connecting to the GCX mainline.
Following closing in January, Gulf Coast Express pipeline will be jointly owned by subsidiaries of Kinder Morgan and affiliates of ArcLight Capital Partners.
Phillips 66 also said Dec. 16 its 2025 capital budget of $2.1 billion will include midstream spending of $975 million – $429 for sustaining projects and $546 million for growth projects. Phillips 66 said, “The budget advances the integrated NGL wellhead-to-market value chain by strengthening the company’s position in key basins, including increasing gas processing capacity.”