Phillips 66 Announces Open Season on the Blue Line System

Rhea-AI Summary

Phillips 66 announces the launch of a binding open season for shipper commitments on its Blue Line System. The system, operated by Phillips 66 Pipeline, will transport propane and butane from Wichita, Kansas, to Jefferson City, Missouri, and East St. Louis, Illinois. The open season starts on June 7, 2024, and will remain open until July 6, 2024. The transportation services are expected to commence in the winter season of 2024, pending FERC approval. Interested parties must sign a confidentiality agreement to participate.

Positive

• Launch of binding open season could secure long-term transportation contracts, ensuring steady revenue.
• Blue Line System expansion could enhance Phillips 66's market presence and competitive advantage.
• Expected service start in Q4 2024 aligns Phillips 66 with peak seasonal demand, enhancing profitability.

Negative

• Dependence on FERC approval introduces regulatory risk that may delay project timelines.
• Potential high costs and logistics involved in expanding the pipeline infrastructure.

HOUSTON--(BUSINESS WIRE)-- Phillips 66 (NYSE: PSX) announces its subsidiary, Phillips 66 Pipeline, LLC, is launching a binding open season to solicit shipper commitments for services from Wichita, Kansas, to Jefferson City, Missouri, and East St. Louis, Illinois, on its Blue Line System.

The Blue Line System is a common carrier liquids product pipeline transporting propane and butane between the origin and destination points set forth in its tariff on file at FERC and available on the Phillips 66 website. The open season will provide an opportunity for interested shippers to secure long-term LPG product transportation on the Blue Line System under binding transportation service agreements. The transportation services are expected to be available during winter seasons (October through March) starting in the fourth quarter of 2024, subject to FERC approval of a related settlement to be filed. The open season will commence today, June 7, 2024, at noon CDT and will remain open for 30 days ending at 5:00 pm CDT on July 6.

Prior to participating in the open season, interested parties must execute a confidentiality agreement to govern the receipt of the open season documentation. For a form of confidentiality agreement and additional information regarding the Blue Line System open season, please contact Chris Banket at Resource.BlueLineOpenSeason@p66.com.

About Phillips 66

Phillips 66 (NYSE: PSX) is a leading diversified and integrated downstream energy provider that manufactures, transports and markets products that drive the global economy. The company’s portfolio includes Midstream, Chemicals, Refining, and Marketing and Specialties businesses. Headquartered in Houston, Phillips 66 has employees around the globe who are committed to safely and reliably providing energy and improving lives while pursuing a lower-carbon future. For more information, visit phillips66.com or follow @Phillips66Co on LinkedIn.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240607211615/en/

Jeff Dietert (investors)

832-765-2297

jeff.dietert@p66.com

Owen Simpson (investors)

832-765-2297

owen.simpson@p66.com

Rich Johnson (media)

832-765-1016

rich.johnson@p66.com

Source: Phillips 66

FAQ

What is the Blue Line System by Phillips 66?

The Blue Line System is a pipeline for transporting propane and butane from Wichita, Kansas, to Jefferson City, Missouri, and East St. Louis, Illinois.

When does the open season for Phillips 66's Blue Line System start?

The open season starts on June 7, 2024, at noon CDT and closes on July 6, 2024, at 5:00 pm CDT.

What products will the Blue Line System transport?

The Blue Line System will transport propane and butane.

When are the transportation services for the Blue Line System expected to be available?

The services are expected to be available during the winter seasons starting in the fourth quarter of 2024.

What is required for interested parties to participate in the open season for the Blue Line System?

Interested parties must execute a confidentiality agreement to participate in the open season.