Houston-based Phillips 66 Partners, a limited partnership formed by Phillips 66, has agreed to pay $75 million for a 50 percent interest in the Liberty Pipeline project, which will provide crude oil transportation service from the Rockies and Bakken production areas to Cushing, Okla.
The cost of the pipeline is expected to be approximately $1.6 billion, on a gross basis, or $800 million net to the partnership. Phillips 66 Partners said it plans to fund the transaction through a combination of cash on hand and a revolving credit facility.
“The Liberty Pipeline is a great addition to the Phillips 66 Partners portfolio,” said Greg Garland, Phillips 66 Partners’ chairman and CEO. “It is a strong organic project and continues our strategy of growing PSXP with stable fee-based cash flows, supported by long-term volume commitments.”
The transaction is expected to close on March 2, with service on the pipeline expected to start in the first half of 2021.