A major milestone has passed in the startup of $2.2 billion Gray Oak Pipeline project that has started line fill with an eye toward starting in November, CEO Greg Garland said on the company’s third-quarter earnings conference call.
Gray Oak Pipeline project is a joint venture between Phillips 66, Marathon Petroleum Corp. and Enbridge Inc. Garland added that the line would ramp up to full service sometime in the first quarter of 2020.
The pipeline would move 900,000 barrels of crude per day from the Permian Basin and Eagle Ford to destinations near Houston and Corpus Christi, Texas. Gray Oak connects to South Texas Gateway Terminal project, another project under the Phillips 66 umbrella which would build a new crude terminal in Corpus Christi and is on track to start up in summer of 2020.
“I think we’ll see Corpus Christi continue to increase and take market share from other export facilities across the Gulf,” said Jeff Dietert, vice president of investor relations for Phillips 66.