Gray Oak Oil Pipeline
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Gray Oak Oil Pipeline is an oil pipeline in the United States.
Location
The pipeline would run from Orla to Sweeny, Texas, USA, with laterals in Three Rivers, Corpus Cristi, and Ingleside, Texas, USA.[1][2]
Project details
- Operator: Phillips 66*
- Owner: Gray Oak Pipeline LLC**
- Parent company: Enbridge [ ]; Phillips 66 [42.25%]; Marathon Petroleum Corporation; Diamondback Energy
- Capacity: 900,000 barrels per day[3]
- Length: 850 miles[3]
- Status: Operating[3]
- Start year: 2019[3]
- Financing: A US$1.23 billion loan from a consortium of commercial banks;[4] three bond issues raising US$1.4 billion in refinancing arranged by Mizuho, TD Bank, MUFG, Bank of America, Royal Bank of Canada and Scotiabank[5]
*Phillips 66 Partners originally operated the pipeline, though as of 2022 this has been merged into Phillips 66.[6] In August 2022, a deal was announced in which Enbridge would become the new operator of the pipeline.
**Gray Oak Pipeline LLC is owned by Gray Oak Holdings LLC
Background
The pipeline runs from the Permian Basin in West Texas to both Corpus Christi and the Sweeney/Freeport area along the Texan Gulf Coast.[3]
In April 2018 Phillips Partners announced that it had received sufficient commitments from shippers to begin building the pipeline, which will terminate at the South Texas Gateway Terminal, a proposed oil storage facility in Corpus Christi, Texas.[7]
In November 2019, Phillips announced it had begun "initial service on its 900,000 b/d Gray Oak pipeline from the Permian basin to Corpus Christi, Texas." The "initial service" includes only the Corpus Christi destinations. Phillips said that "full service on the line will start in the first quarter of 2020." [8]
In April 2020, Phillips announced that the Gray Oak Pipeline had made its first deliveries of crude oil to the U.S. Gulf Coast region, taking it closer to full service.[9] The pipeline commenced full service in the second quarter of 2020, according to the rating agency Moody's.[10]
Phillips 66 initially held 42.25% of Gray Oak, with Enbridge holding 22.8% and Marathon and Diamondback holding an unknown amount.[11][12] In August 2022, Enbridge and Phillips 66 completed a joint venture transaction in which Enbridge's indirect economic interest increased to 58.5%, with Phillips at 6.5%.[13][14] As a result, Enbridge is announced to be assuming operation of the pipeline.[15]
Financing
In April 2019, Phillips 66 put the cost estimate of the project at US$2.7 billion.[16] A loan deal for US$1.3 billion to finance the project was closed in June 2019. The participating banks were MUFG, Mizuho, TD Bank, Bank of America, Royal Bank of Canada, Scotiabank, BMO Capital Markets, BB&T Capital Markets, Canadian Imperial Bank of Commerce, Intesa Sanpaulo, PNC Bank, SunTrust Bank and Sumitomo Mitsui.[4]
In September 2020, US$1.4 billion in refinancing for the project was raised via three bond issues which were arranged by Mizuho, TD Bank, MUFG, Bank of America, Royal Bank of Canada and Scotiabank.[5]
Articles and resources
References
- ↑ "Gray Oak Pipeline Route". grayoakpipeline.com. 26 February 2020. Retrieved 26 February 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ National Energy and Petrochemical Map , FracTracker, February 28, 2020
- ↑ 3.0 3.1 3.2 3.3 3.4 Petroleum & Other Liquids, Movements, Energy Information Administration, June 4, 2020
- ↑ 4.0 4.1 "Gray Oak Pipeline", IJGlobal, accessed Jul. 29, 2020
- ↑ 5.0 5.1 "Gray Oak Pipeline Refinancing", IJGlobal, accessed Oct. 13, 2020
- ↑ Blum, Jordan (2020-08-31). "Phillips 66 Partners launches open season to expand Gray Oak Pipeline". www.spglobal.com. Retrieved 2022-04-13.
- ↑ Phillips 66 to Proceed with Gray Oak Pipeline, Pipeline & Gas Journal, Apr. 25, 2018
- ↑ Phillips 66 (22 November 2019). "Phillips 66 starts Gray Oak crude-line service: Update". Argus. Retrieved 26 February 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ "Gray Oak Pipeline ramps up service", Phillips 66, Apr. 15, 2020
- ↑ "Moody's assigns Baa3 rating to Gray Oak Pipeline's proposed notes", Moody's Investors Service, Sep. 9, 2020
- ↑ Gray Oak Pipeline LLC. "Frequently Asked Questions". Gray Oak Pipeline LLC. Retrieved 26 February 2020.
{{cite web}}: CS1 maint: url-status (link) - ↑ Blum, Jordan (2020-08-31). "Phillips 66 Partners launches open season to expand Gray Oak Pipeline". www.spglobal.com. Retrieved 2022-04-13.
- ↑ "Enbridge Advances its U.S. Gulf Coast Oil Strategy through Increased Ownership in Gray Oak Pipeline". PR Newswire. 17 August 2022. Retrieved 9 March 2023.
- ↑ Dick, Jacob (18 August 2022). "Phillips 66, Enbridge Realign DCP Midstream, Gray Oak Stakes". Natural Gas Intelligence. Retrieved 9 March 2023.
- ↑ "Enbridge to assume operation of Gray Oak oil pipeline in Texas". BNN Bloomberg. 17 August 2022. Retrieved 9 March 2023.
- ↑ Everett Wheeler, "Phillips 66 increases cost guidance for 850-mile Gray Oak pipeline", S&P Global, Apr. 30, 2019
