- Phillips 66 (NYSE:PSX) and Plains All American Pipeline (NASDAQ:PAA) say they have formed a 50/50 joint venture to proceed with construction of the Red Oak pipeline system to provide crude oil transportation service from Cushing, Okla., and the Permian Basin to the Texas Gulf Coast.
- The companies say Red Oak is underpinned with long-term shipper volume commitments, and in initial service is targeted for as early as Q1 2021, subject to applicable permits and regulatory approvals.
- PAA will lead project construction on behalf of the JV, and PSX will operate the pipeline; the companies expect the project to cost ~$2.5B.