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Phillips 66 Partners, midstream companies to jointly develop La. crude pipeline

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Phillips 66 Partners, midstream companies to jointly develop La. crude pipeline

Phillips 66 Partners LP, Harvest Midstream Co. and PBF Logistics LP agreed to jointly develop a 400,000-barrel-per-day crude oil pipeline in Louisiana, launching an open season to gather transportation service commitments for the project.

The ACE pipeline system would run from the market hub in St. James, La., to downstream refining areas in Belle Chasse, Meraux and Chalmette, La., according to a Jan. 14 news release. The project's initial throughput capacity of 400,000 bbl/d may be expanded based on shipper interest. The companies have the option to add a delivery destination in Clovelly, La., depending on market demand.

The developers also plan to build a new segment connecting the St. James market hub to Harvest Midstream's existing CAM pipeline, which would be contributed to the overall ACE system.

The open season is scheduled to start at noon CT on Jan. 14. The pipeline system is expected to commence service in the second half of 2020.

Phillips 66 Partners was formed by Phillips 66 to own and operate crude oil, NGL and refined petroleum product midstream assets. Harvest Midstream is a Houston-headquartered oil and gas midstream services provider with assets across the Lower 48 and Alaska. PBF Logistics is a partnership formed by PBF Energy Inc. to hold midstream assets such as crude oil and refined petroleum product pipelines.