Phillips 66 (NYSE:PSX) and Plains All American Pipeline (NYSE: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.
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