Phillips 66 announced Tuesday it has completed its $2.2 billion acquisition of EPIC Y-Grade GP, LLC and EPIC Y-Grade, LP, gaining control of natural gas liquids pipelines, fractionation facilities, and distribution systems.   

The acquisition includes two fractionators near Corpus Christi, Texas, with a combined capacity of 170,000 barrels per day (MBD), approximately 350 miles of purity distribution pipelines, and an approximately 885-mile NGL pipeline with a current capacity of 175,000 barrels per day. 

The pipeline connects production supplies in the Delaware, Midland, and Eagle Ford basins to fractionation complexes and the Phillips 66 Sweeny Hub.   

"This transaction strengthens our position as a leading integrated downstream energy provider," said Don Baldridge, Phillips 66 executive vice president of Midstream & Chemicals, in a statement.

"We are evolving our portfolio and enhancing our ability to provide seamless and efficient delivery of energy products."   

Phillips 66 announced that an expansion project to increase pipeline capacity from 175,000 barrels per day to 225,000 barrels per day is expected to be completed in the second quarter. 

A second expansion, sanctioned to increase capacity to 350,000 barrels per day, is expected to be completed in the fourth quarter of 2026.   

The company highlighted the strategic importance of the acquired assets in connecting Permian Basin production to Gulf Coast refiners, petrochemical companies, and export markets, noting their integration with existing Phillips 66 assets.