HOUSTON – Bracewell LLP assisted Phillips 66 in connection with the announced $1.5 billion expansion of the company’s Sweeny Hub. The project will include the construction of two 150,000 barrel-per-day (BPD) natural gas liquids (NGL) fractionators in Old Ocean, Texas, additional NGL storage capacity and associated pipeline infrastructure. The expanded hub is expected to begin commercial operations in late 2020. Bracewell represented Phillips 66 in the structuring and negotiation of its transaction with DCP Midstream LP (DCP) whereby DCP acquired an option to purchase up to a 30 percent ownership interest in the new fractionators.
The Sweeny Hub currently has 100,000 BPD of fractionation capacity through Phillips 66 Partners’ Sweeny Fractionator One, as well as 200,000 BPD of LPG export capability and access to 9 million barrels of gross NGL storage capacity at the nearby Phillips 66 Partners’ Clemens Caverns. Upon completion, the Sweeny Hub will have 400,000 BPD of NGL fractionation capacity and access to 15 million barrels of total storage capacity.
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of midstream, chemicals, refining, and marketing and specialties businesses, the company processes, transports, stores and markets fuels and products around the world.
Bracewell lawyers involved in this transaction included:
Partners: Hans P. Dyke, G. Alan Rafte, Elizabeth G. McGinley and Jason B. Hutt
Counsel: Steven J. Lorch
Associates: Shannon M. Rice, Patrick K. Johnson and Derek A. B. Speck