Phillips 66 and Trafigura Form Joint Venture to Develop Deepwater Port
February 28 2020 - 8:30AM
Business Wire
Phillips 66 (NYSE: PSX) and Trafigura Group Pte. Ltd announce
they have formed a 50/50 joint venture, Bluewater Texas Terminal
LLC (“Bluewater Texas”), to develop an offshore deepwater port
project located approximately 21 nautical miles east of the
entrance to the Port of Corpus Christi.
The proposed project, to be constructed by Phillips 66, will
consist of up to two single point mooring buoys capable of fully
loading Very Large Crude Carriers (VLCCs) to export crude oil. The
project is currently in the permitting stage. The joint venture
owners expect to make a final investment decision later this year,
pending permit approval and customer volume commitments that
support the project meeting the owners’ economic return
thresholds.
Trafigura has withdrawn its application to develop the Texas
Gulf Terminals deepwater port facility that was submitted to the
United States Maritime Administration (MARAD) in July 2018.
The Bluewater Texas joint venture combines the unique market
position that Trafigura has built in the United States as a leading
exporter and marketer of crude oil with Phillips 66’s commercial
expertise, existing infrastructure network on the U.S. Gulf Coast,
and proven operating experience, including the safe operation of a
single point mooring buoy in the United Kingdom since 1971.
The Bluewater Texas joint venture is working with the Port of
Corpus Christi Authority to provide a safe and environmentally
sustainable infrastructure for the export of crude oil to global
markets while benefitting the regional economy.
For additional information regarding commercial services at
Bluewater Texas Terminal, please contact
bluewatertexasterminal@p66.com.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics
company. With a portfolio of Midstream, Chemicals, Refining, and
Marketing and Specialties businesses, the company processes,
transports, stores and markets fuels and products globally.
Phillips 66 Partners, the company’s master limited partnership, is
integral to the portfolio. Headquartered in Houston, the company
has 14,500 employees committed to safety and operating excellence.
Phillips 66 had $59 billion of assets as of Dec. 31, 2019. For more
information, visit http://www.phillips66.com or follow us on
Twitter @Phillips66Co.
About Trafigura
Founded in 1993, Trafigura is one of the largest physical
commodities trading groups in the world. Trafigura sources, stores,
transports and delivers a range of raw materials (including oil and
refined products and metals and minerals) to clients around the
world. The trading business is supported by industrial and
financial assets, including 49.3 percent owned global oil products
storage and distribution company Puma Energy; global terminals,
warehousing and logistics operator Impala Terminals; Trafigura's
Mining Group; and Galena Asset Management. The Company is owned by
over 700 of its 8,000 employees who work in 80 offices in 41
countries around the world. Trafigura has achieved substantial
growth over recent years, growing revenue from USD12 billion in
2003 to USD 171.5 billion in 2019. The Group has been connecting
its customers to the global economy for more than two decades,
growing prosperity by advancing trade. Visit:
https://www.trafigura.com.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This news release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors
created thereby. Words and phrases such as “continues,” “expects,”
“will,” “pursue,” “propose,” and similar expressions are used to
identify such forward-looking statements. However, the absence of
these words does not mean that a statement is not forward-looking.
Forward-looking statements relating to Phillips 66’s operations
(including joint venture operations) are based on management’s
expectations, estimates and projections about the company, its
interests and the energy industry in general on the date this news
release was prepared. These statements are not guarantees of future
performance and involve certain risks, uncertainties and
assumptions that are difficult to predict. Therefore, actual
outcomes and results may differ materially from what is expressed
or forecast in such forward-looking statements. Factors that could
cause actual results or events to differ materially from those
described in the forward-looking statements include fluctuations in
crude oil and crude oil transportation or terminalling prices and
refining margins; unexpected changes in costs for constructing,
modifying or operating our facilities (including joint venture
facilities); unexpected difficulties in, lack of, or disruptions
in, adequate and reliable refining, transporting, or terminalling
of crude oil; weather interference with project construction,
including the impact of extreme weather events or conditions;
potential liability from litigation or for remedial actions,
including removal and reclamation obligations under environmental
regulations; limited access to capital or significantly higher cost
of capital related to illiquidity or uncertainty in the domestic or
international financial markets; the impact of adverse market
conditions, capacity overbuild, permitting delays, permitting
denials, or other similar risks to those identified herein
affecting Phillips 66, as well as the ability of Phillips 66 to
successfully execute its growth plans; and other economic,
business, competitive and/or regulatory factors affecting Phillips
66’s businesses generally as set forth in our filings with the
Securities and Exchange Commission. Phillips 66 is under no
obligation (and expressly disclaims any such obligation) to update
or alter its forward-looking statements, whether as a result of new
information, future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20200228005249/en/
Phillips 66 Jeff Dietert (investors) 832-765-2297
jeff.dietert@p66.com Brent Shaw (investors) 832-765-2297
brent.d.shaw@p66.com Dennis Nuss (media) 855-841-2368
dennis.h.nuss@p66.com Trafigura +41 22 592 45 28
media@trafigura.com
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