Phillips 66 Partners (PSXP) has three major crude transportation systems:
- Clifton Ridge crude system – This crude oil pipeline, terminal, and storage system, located in Sulphur, Louisiana, is the primary source for delivery of crude oil to Phillips 66’s (PSX) Lake Charles refinery.
- Sweeny to Pasadena products system – This system is the primary distribution outlet for refined products produced at Phillips 66’s Sweeny refinery. It consists of a refined petroleum product pipeline, a terminal, and a storage system extending from PSX’s Sweeny refinery to its refined petroleum product terminal in Pasadena, Texas. Ultimately, the system connects to the Explorer and Colonial refined petroleum product pipeline systems and other third-party pipeline and terminal systems.
- Hartford Connector products system – This system is the distribution outlet for refined products produced at the Wood River refinery—a joint-venture-owned refinery involving Phillips 66 and Cenovus Energy—to third-party pipeline and terminal systems, including the Explorer refined petroleum product pipeline system.
PSXP is a component of the Global X MLP & Energy Infrastructure ETF (MLPX) and the First Trust North American Energy Infrastructure Fund (EMLP). PSX is a component of the Energy Select Sector SPDR Fund (XLE) and the Vanguard Energy ETF (VDE).
How PSXP generates revenue
PSXP generates revenues primarily by charging tariffs and fees for transporting crude oil and refined petroleum products through its pipelines. It also charges tariffs for storing crude and refined products at its storage facilities.
We’ll take a look at PSXP’s assets in greater detail in the next part of this series.