HOUSTON--(BUSINESS WIRE)--
Phillips 66 (NYSE: PSX) today announced that it has signed a five-year
contract with Global Partners LP (NYSE: GLP) under which Global will use
its rail transloading, logistics and transportation system to deliver
crude oil from the Bakken region of North Dakota to the Phillips 66
Bayway refinery in New Jersey. This is one of several commitments to
transportation infrastructure Phillips 66 has made that tie directly to
its strategy of delivering advantaged crude oil to the company's U.S.
refineries.
The terms of the contract include a take-or-pay commitment from Phillips
66 to receive approximately 91 million barrels of crude oil over the
contract term, which equates to approximately 50,000 barrels per day.
“Global has established a ‘virtual pipeline' for the reliable
transportation of Bakken crude,” said Tim Taylor, Executive Vice
President, Commercial, Marketing, Transportation & Business Development
of Phillips 66. “Our five-year agreement with Global assures us
long-term access to advantaged crude for our Bayway refinery through
what we believe is a cost competitive origin-to-destination supply
system to the East Coast.”
“We are proud to partner with one of the world's leading independent
downstream energy companies,” said Eric Slifka, President and CEO of
Global Partners. “Phillips 66 and its predecessor have been
long-standing strategic business partners with Global for more than 15
years in the refined products market.”
The contract will utilize Global's network of loading facilities and
offloading terminals. Phillips 66 is one of the first energy companies
to move shale crude to the East Coast. Last year, the company expanded
its capability to deliver shale crude to its refineries by truck, rail,
barge, ocean going vessels, and pipeline.
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 approximately 14,000 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 branded
marketing outlets, and 15,000 miles of pipeline systems. In Midstream,
the company primarily conducts operations through its 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.
