Phillips 66 Signs Domestic Crude Logistics Agreements To Increase Access to Secure, Advantaged Crude

  Phillips 66 Signs Domestic Crude Logistics Agreements To Increase Access to
  Secure, Advantaged Crude

Business Wire

HOUSTON -- March 20, 2013

As an energy manufacturing company, Phillips 66 (NYSE: PSX) is helping to
shape the energy revolution in the U.S. by increasing supplies of
cost-advantaged North American crude oil to its U.S. refineries. Phillips 66
has reached agreements with several logistics providers for rail loading and
terminaling services and a pipeline project, all of which support a rapidly
changing domestic energy landscape and energy security.

“We are aggressively pursuing increased access to advantaged crudes in North
America by partnering with leading third-party transportation providers and
better leveraging our own system capabilities,” said Greg Garland, Phillips 66
chairman and chief executive officer. “Increasing our utilization of those
advantaged crudes should allow us to capture significant value in our Refining
and Marketing businesses.”

Details of the agreements include:

  *Enbridge Energy Partners, L.P. (NYSE: EEP) subsidiary Enbridge Rail (North
    Dakota) LLC has agreed to a three-year deal for railcar loading of Bakken
    shale crude at Enbridge’s Berthold, N.D., terminal beginning in May 2013,
    with volumes ramping up to 35,000 to 40,000 barrels per day (BPD) by
    November. The crude oil will be delivered to Phillips 66 refineries on the
    West and East Coasts, and the company may also pursue opportunities to
    send it to its Gulf Coast refineries.
  *Targa Resources Partners LP (NYSE:NGLS) has agreed to provide rail
    unloading and barge loading services in Tacoma, Wash., The five-year
    agreement, which began in late 2012, allows advantaged U.S. or Canadian
    crude oil to be unloaded from railcars at Targa’s Tacoma terminal and
    transloaded onto barges for delivery to the Phillips 66 Ferndale, Wash.,
    refinery. The facility also allows for delivery into the San Francisco,
    Calif., refinery, where crude imported from outside of North America could
    be replaced. Currently, the terminal is capable of receiving manifest rail
    (individual cars), but as volumes ramp up it will transition to unit train
    capability this summer. At full volume, the delivery capability is
    estimated to be approximately 30,000 BPD.
  *Magellan Midstream Partners, L.P. (NYSE: MMP) has signed an agreement to
    transport advantaged crude on Magellan’s pipelines near Phillips 66’s
    refinery in Ponca City, Okla. The project will replace West Texas
    Intermediate crude from Cushing, Okla., with virgin crude from the nearby
    Mississippian Lime play. Small volumes are expected to be delivered to the
    refinery by late 2013, with approximately 20,000 BPD anticipated by the
    project’s completion date in January 2014. Phillips 66 is also investing
    in its own transportation assets in Oklahoma to transport an additional
    40,000 BPD of Mississippian Lime crude to the Ponca City Refinery, and at
    the refinery to accept crude from the Magellan project.

Phillips 66’s general manager, Crude & International Supply Glenn Simpson,
whose group led the way on arranging the agreements, added, “These business
partners give us another important link to increasing access to advantaged
crudes, which continues to be a top priority for the Phillips 66 team for the
foreseeable future.”

About Phillips 66

Headquartered in Houston, Phillips 66 is an advantaged downstream energy
company with segment-leading Refining and Marketing (R&M), Midstream and
Chemicals businesses. The company has 13,500 employees worldwide. Phillips
66’s R&M operations include 15 refineries with a net crude oil capacity of 2.2
million barrels per day, 10,000 owned or supplied branded marketing outlets,
and 15,000 miles of pipeline systems. The Midstream segment includes Phillips
66’s 50 percent interest in DCP Midstream, LLC, one of the largest natural gas
gatherers and processors in the United States, with 7.2 billion cubic feet per
day of gross natural gas processing capacity. Phillips 66’s Chemicals business
is conducted through its 50 percent interest in Chevron Phillips Chemical
Company LLC, one of the world’s top producers of olefins and polyolefins with
more than 30 billion pounds of net annual chemicals processing capacity across
its product lines. For more information, visit www.phillips66.com or follow us
on Twitter @Phillips66Co.

Contact:

Phillips 66
Dennis Nuss (media)
832-765-1850
dennis.h.nuss@p66.com
Rosy Zuklic (investors)
832-765-2297
rosy.zuklic@p66.com
 
Press spacebar to pause and continue. Press esc to stop.