Phillips 66 (NYSE:PSX) announced the completion of its acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade LP (EPIC NGL) for total cash consideration of about $2.2 billion.
EPIC NGL own various subsidiaries and long-haul natural gas liquids pipelines, fractionation facilities and distribution systems.
“This transaction strengthens our position as a leading integrated downstream energy provider,” Don Baldridge, executive vice president of midstream & chemicals at Phillips 66, said in a statement.
The EPIC NGL business consists of two fractionators (170 MBD) near Corpus Christi, Texas, approximately 350 miles of purity distribution pipelines and an approximately 885-mile NGL pipeline (175 MBD) linking production supplies in the Delaware, Midland and Eagle Ford basins to fractionation complexes and the Phillips 66 Sweeny Hub.
The expansion project for the NGL pipeline to increase capacity to 350 MBD is expected to be completed in the fourth quarter of 2026.
The acquired assets connect Permian production to Gulf Coast refiners, petrochemical companies and export markets, and are highly integrated with the Phillips 66 asset base, according to the company.