Company News

Phillips 66 to cut tariffs for Gray Oak crude pipeline in Texas

HOUSTON, Nov 20 (Reuters) - Phillips 66 Partners LP proposed cutting tariff rates to $3.90 a barrel to ship crude on its new 900,000-barrel-per-day (bpd) Gray Oak crude pipeline within points in Texas, according to filings on Wednesday.

* The company proposed both spot rates and committed rates of $3.90 a barrel to transport crude within Texas, down from the $4.75 rate it had set last month.

* The rates, set to come into effect by Dec. 1, would apply only to accelerated commissioning service and are pending approval with Texas state regulators. Phillips 66 did not immediately respond to a request for comment.

* The filings included a new origin point at Santa Rita, Texas, in Reagan County. It was not immediately clear what rates were for transport to delivery points in the Houston and Corpus Christi, Texas, areas.

* The Gray Oak pipeline is the biggest of about three new pipelines connecting the Permian basin, the nation’s largest oil field, to the U.S. Gulf Coast. (Reporting by Collin Eaton in Houston Editing by Marguerita Choy)