Shippers have been given permission by Phillips 66 Partners LP to store crude on its Gray Oak pipeline network in Texas, as available storage space becomes increasingly scarce. The move will free up one million barrels of extra storage, to be used by shippers carrying West Texas Immediate and West Texas Light oil.
A Phillips 66 spokesperson said in a statement: “In response to shipper demand, Gray Oak Pipeline is modifying its rules and regulations to accommodate on-system crude storage. Current events have significantly impacted demand for West Texas Crude oil, resulting in an urgent need for crude oil storage.”
The storage in question will be made available within the pipeline’s injection or origin points, throughout the network’s storage tank facilities, it has been reported.
Greg Garland, Chairman and CEO of Phillips 66, said that although it was significantly reducing its capital spending due to “these times of uncertainty”, it was “well positioned to manage through the challenging environment” with its “high-quality, diversified asset base and strong balance sheet”.
The Gray Oak Pipeline is one of the largest new pipelines in America. It is used to transport about 900,000 barrels of crude a day from the Permian Basin to delivery locations in and around the Houston Ship Channel.
For more information visit www.phillips66.com