“Phillips 66 has decades of experience safely and responsibly operating similar SPM systems and other marine loading facilities,” Nuss said. “BWTX would provide U.S. oil producers another outlet for their increasing volumes while also potentially reducing the need for reverse lightering and the environmental impact that those operations have on a regional level.”
U.S. crude exports hit 3.12 MMbpd this month, and shale oil from fields in Texas, Colorado, New Mexico and North Dakota is projected to push U.S. output to 12.32 million bpd this year. At least eight more potential oil export terminals projects are aiming to send U.S. crude to world markets.
BWTX is one of a series of projects that signal aggressive expansion by Phillips 66 to broaden its transportation and logistics operations. The facility could load up to 1.56 MMbpd, nearly the capacity of a supertanker. If approved by the U.S. Maritime Administration, U.S. Coast Guard and Texas regulators, operations could begin in mid-2021, a person familiar with its plans told Reuters.
Phillips 66 already owns a 25% stake in Buckeye Partners’ South Texas Gateway export terminal, which recently completed site preparation and began construction in Corpus Christi.
Last week, the company announced it has formed two joint ventures and sanctioned construction of $4.1 billion of new crude oil pipelines to link shale production from North Dakota and West Texas through Cushing, Okla., to the Texas Gulf Coast.
Phillips 66 said it will build the $2.5 billion Red Oak Pipeline system with Plains All American Pipeline. Their joint venture will construct a 30-inch pipeline from Cushing to Wichita Falls and Sealy, Texas. From Sealy, the joint venture will construct a 30-inch pipeline segment to Corpus Christi and Ingleside and a 20-inch pipeline segment to Houston and Beaumont.
– P&GJ Staff and Wire Report