According to a press release on their website, Phillips 66 Partners indicated that it will proceed with the construction of the Gray Oak Pipeline system.

The pipeline will transport crude oil from West Texas to the Corpus Christi, Sweeny and Freeport markets, and could deliver crude oil of up to 700,000 barrels per day or more from the Permian Basin to downstream markets.

Fully subscribed, it's capacity could eventually be expanded to nearly 1 million barrels per day of long-haul takeaway, said Phillips 66 Partners.

Origination stations will be constructed in Reeves, Loving, Winkler, and Crane counties in West Texas, as well as from locations in the Eagle Ford production area in South Texas.

The pipeline is expected to be placed in service by the end of 2019, and is backed by long-term, third-party, take-or-pay commitments with primarily investment-grade customers.

“The South Texas Gateway Terminal will serve as a premier open-access deepwater marine terminal in the Port of Corpus Christi,” said Buckeye’s Khalid Muslih, president of the Global Marine Terminals business unit.

“The terminal will provide customers with logistics solutions that connect the region’s rapidly growing crude oil production with advantaged access to global markets".

About Phillips 66 Partners

Headquartered in Houston, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products and natural gas liquids pipelines and terminals and other transportation and midstream assets. For more information, visit