OREANDA-NEWS. Phillips 66 Pipeline LLC, a wholly owned subsidiary of Phillips 66 (NYSE: PSX), will proceed with developing the Cross-Channel Connector project. This project will expand the capacity to transport refined petroleum products across the Houston Ship Channel via pipeline. The company completed a successful open season for the Cross-Channel Connector after receiving shipper commitments to utilize the additional capacity. In addition, Phillips 66 Pipeline LLC received positive response to a potential Phase 2 of the project and is proceeding with an evaluation of this expansion.

“Transportation at Phillips 66 is part of our growing Midstream business,” said Debbie Adams, president, Phillips 66 Transportation. “The Cross-Channel Connector project is a key investment to help us leverage our infrastructure and the opportunities of the North American energy renaissance.”

The Cross-Channel Connector project leverages existing assets and will combine a reactivated pipeline under the Houston Ship Channel along with the expansion of an active line in Pasadena. The company plans to connect to Magellan’s refined product pipeline which will allow the Cross-Channel Connector to transport refined petroleum products from the south side of the Houston Ship Channel to the Magellan Midstream Partners and Kinder Morgan Energy Partners systems on the north side of the channel at Galena Park and East Houston.

The company anticipates the project could be complete as early as the fourth quarter of 2014, subject to the receipt of necessary permits and regulatory approvals. The Cross Channel Connector is expected to have an initial system capacity of up to 180,000 barrels per day. The Phase 2 expansion could add an additional 50,000 barrels per day of capacity.