Houston-based Phillips 66 said this week it agreed to purchase EPIC Y-Grade GP and EPIC Y-Grade LP, which own subsidiaries and long-haul natural gas liquids pipelines, fractionation facilities and distribution systems, for $2.2 billion. EPIC NGL consists of two fractionators (170 million b/d) near Corpus Christi, about 350 miles of distribution pipelines, and NGL trunkline of 885 miles (175 million b/d) that links production supplies in Delaware, Midland and Eagle Ford basins to fractionation complexes and to the Phillips 66 Sweeney hub.
Mark Lashier, chairman and CEO, said Monday, “This transaction optimizes our Permian NGL value chain and allows Phillips 66 to provide producers with comprehensive flow assurance, reaching fractionation facilities near Corpus Christi, Sweeny and Mont Belieu.”
Phillips 66 is expanding its pipeline capacity to 225 million b/d and has sanctioned a second expansion to 350 million b/d. The facilities connect Permian production to Gulf Coast refineries, petrochemical companies and export markets.