Phillips 66 will proceed with its proposed Cross-Channel Connector Project, having secured commitments from shippers, the company announced on Thursday. The 180,000-barrels-per-day connector will allow for deliveries from the south end of the Houston Ship Channel to the Magellan Midstream Partners and Kinder Morgan Energy Partners systems on the north side. It will combine a reactivated pipeline under the ship channel with an expanded line in Pasadena. Phillips 66 said the connector could be completed by the end of the year. The company first announced the project in October.
Phillips 66 also said it has received “positive response” to a second phase of the project that could add another 50,000 barrels per day in transport capacity.