Phillips 66's Bayou Bridge Pipeline Seeks Customers for $300 Million Second Phase, as First Begins to Wrap Up

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Researched by Industrial Info Resources (Sugar Land, Texas)--Bayou Bridge Pipeline LLC is looking for customers. The crude-oil pipeline, which runs from Nederland, Texas, to Louisiana's booming refining markets on the Gulf Coast, recently launched a binding expansion open season to assess customer interest in its transportation services. Bayou Bridge Pipeline is jointly owned by subsidiaries of Phillips 66 (NYSE:PSX) (Houston, Texas), Energy Transfer Partners LP (NYSE:ETP) (Dallas, Texas) and Sunoco Logistics Partners LP (NYSE:SXL) (Philadelphia, Pennsylvania). Industrial Info is tracking $300 million in projects related to the pipeline.

Construction is well under way on the first phase of the pipeline, a 30-inch segment that runs from Nederland to Lake Charles, Louisiana. Bayou Bridge expects commercial operations for this segment to begin in the first quarter of 2016.

Bayou Bridge and its parent companies will use the results of the open season to determine the diameter of the second-phase segment, which will run from Lake Charles to St. James, Louisiana. Industrial Info is tracking Phase II, which includes the new pipeline segment, with an investment value of $250 million, and a new crude-oil pump station, valued at $50 million.

The 150-mile second phase is expected to transport up to 700,000 barrels per day (BBL/d) of crude oil. The in-service date for commercial deliveries is expected to be in the fourth quarter of 2017.

Bayou Bridge Pipeline LLC already has agreed to a connection with NuStar Energy LP's (NYSE:NS) (San Antonio, Texas) crude oil terminal in St. James; NuStar currently is performing $1.5 million in planned tank inspections and upgrades at the facility. Bayou Bridge is in discussions with other companies to connect to the Gulf Coast's extensive crude oil terminal market, according to a company press release.

Phillips 66 owns 40% of Bayou Bridge Pipeline LLC, while ETP and Sunoco Logistics each own 30%. Sunoco Logistics is expected to serve as the system operator.

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