Phillips 66 Partners, Harvest Midstream Co. and PBF Logistics LP recently entered into an agreement to jointly develop the ACE Pipeline System. The ACE Pipeline System will provide crude oil transportation service from the market hub in St. James, Louisiana, to downstream refining destinations in Belle Chasse, Meraux and Chalmette, Louisiana. The pipeline system is expected to have an initial throughput capacity of 400,000 bpd, with the ability for further expansion, depending on shipper interest.
The parties may elect to add a delivery destination in Clovelly, Louisiana, subject to market demand. Subject to customary and regulatory approvals, the pipeline system is expected to be placed in service in the second half of 2020.
The ACE Pipeline System will include a new-build segment to connect the St. James market center to the CAM Pipeline. Harvest Midstream -- a privately held midstream service provider based in Houston -- will contribute its existing CAM Pipeline to the ACE Pipeline System.
An open season commenced in January 2019, allowing transportation service on the ACE Pipeline System. Prior to participating in the open season, interested parties had to execute a confidentiality agreement in order to govern the receipt of the open season documentation.
The project was also in conjunction with PBF Logistics LP, a fee-based, growth-oriented master limited partnership formed by PBF Energy Inc. to own or lease, operate, develop and acquire crude oil and refined petroleum products terminals, pipelines, storage facilities and similar logistics assets.
Headquartered in Houston, Phillips 66 Partners is a growth-oriented master limited partnership formed by Phillips 66 to own, operate, develop and acquire primarily fee-based crude oil, refined petroleum products, and natural gas liquids pipelines, terminals and other midstream assets.
For more information, visit www.phillips66.com or call (281) 293-6600.
