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Permian Basin Oil and Gas Magazine

PBOG is the Official Publication of the Permian Basin Petroleum Association and is published monthly by Zachry Publications, LP.

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Phillips 66, Plains joint venture will construct Red Oak pipeline for crude

June 13, 2019 by Bailey LeRoux

Phillips 66 and Plains All American Pipeline said June 10 their joint venture will proceed with construction of $2.5 billion Red Oak pipeline to transport crude oil from storage terminals in Permian Basin and Cushing, Okla., to Beaumont, Corpus Christi, Houston and Ingleside.  Initial service is expected to begin in 2021Q1.  Red Oak will lease capacity in Plains’ Sunrise pipeline system for 300,000 barrels of crude per day from Midland to Wichita Falls.  The JV will build pipelines from Cushing to Wichita Falls and Sealy and from Sealy to Beaumont, Corpus Christi, Houston and Ingleside.  Plains will lead construction, and Phillips will operate the pipeline.

Greg Garland, Phillips 66 chairman and CEO, said, “The pipeline provides a competitive outlet for shippers to access the key market centers along the Texas Gulf Coast from Cushing and the Permian Basin.”

Filed Under: News Reviews, PBOG Newsletter Tagged With: news reviews, pbog nwsletter

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