Phillips 66 has finalised its $2.2bn cash transaction to acquire EPIC Y-Grade and EPIC Y-Grade, collectively known as EPIC NGL, to gain ownership of a major natural gas liquids (NGL) infrastructure network in the US.
The announcement follows the January 2025 disclosure of the company’s intent to purchase the EPIC NGL business, which spans transportation, processing, and distribution assets across Texas.
The acquired system includes long-haul pipelines, fractionation facilities, and purity product distribution lines extending from key production basins in the Permian region to the Gulf Coast. With this acquisition, Phillips 66 expands its reach across NGL supply routes that connect upstream producers to refining and export destinations.
The core pipeline runs for approximately 1,424km and currently transports 175,000 barrels per day of mixed NGLs from the Delaware, Midland, and Eagle Ford regions to facilities near Corpus Christi and the company’s Sweeny Hub.
Phillips 66 plans to raise the line’s capacity to 225,000 barrels per day by Q2 2025, with a further approved upgrade to 350,000 barrels per day scheduled for completion in late 2026.
In addition to transport infrastructure, the transaction includes the Robstown Fractionation Complex, which operates two units with a combined capacity of 170,000 barrels per day.
The company has identified a potential opportunity to construct a third unit, which would raise total throughput to 280,000 barrels per day. The facilities play a strategic role in processing NGLs for delivery to petrochemical plants, refineries, and marine terminals.
Phillips 66 midstream and chemicals executive vice president Don Baldridge said: “This transaction strengthens our position as a leading integrated downstream energy provider.
“We are evolving our portfolio and enhancing our ability to provide seamless and efficient delivery of energy products. Phillips 66 will offer producers unparalleled flow assurance, while advancing a strategy that is expected to deliver attractive returns and create long-term value for our shareholders.”
The broader EPIC NGL system includes over 1,120km of y-grade pipelines, with a current capacity of 300,000 barrels per day. These lines move unseparated NGLs from gas processing sites to Robstown and can be scaled to support up to 650,000 barrels per day as demand increases.
More than 320km of purity product pipelines are also included in the portfolio. These lines distribute refined NGL components from Robstown to downstream users, including crackers and export terminals, along the Gulf Coast corridor between Corpus Christi and Sweeny.
A key component of the network is the 265km Sweeny Lateral pipeline, commissioned in 2021. It links Robstown with the Sweeny storage and fractionation complex jointly operated by Phillips 66 and Chevron Phillips Chemical.
Phillips 66 confirmed that its 2025 capital expenditure programme will proceed without adjustments, indicating that the acquisition and ongoing infrastructure enhancements will align with previously stated investment plans.
The company stated that integration of EPIC NGL will support its broader objectives to increase midstream capacity while maintaining operational consistency.
