Enbridge partners with Phillips 66 on pipeline project

Canada’s Enbridge has partnered with US-based multinational energy company Phillips 66 to construct a significant oil pipeline that will stretch from West Texas to Houston.

The companies revealed that they would be looking to source potential customers in an open season beginning this week in the aim of finalising the Gray Oak pipeline plans based upon this interest.

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“The Gray Oak Pipeline will provide producers and other shippers the opportunity to secure crude oil transportation from West Texas to the destination markets of Corpus Christi, Freeport, and Houston, Texas, with connectivity to over 3 million barrels per day (bpd) of refining capacity and multiple dock facilities capable of crude oil exports,” Enbridge said in a release.

The firm also revealed that shippers will be able to select from a number of origination stations in the counties of Reeves, Loving, Winkler and Crane in West Texas.

Both Enbridge and Phillips 66 estimate that the Gray Oak Pipeline will have an initial throughout capacity of 385,000 bpd, depending on the interest received in during the open season.

The companies aim for the pipeline to be in operation during the second half of 2019.