US oil refiner Phillips 66 said on Friday 14 June, 2024, it would sell its 25% stake in the Rockies Express Pipeline (REX) for about US$1.28 billion, including debt, to a subsidiary of Tallgrass Energy, reports Reuters.
"This sale is an important step in our commitment to deliver over US$3 billion in asset divestitures," Phillips 66 CEO Mark Lashier said in a statement.
REX, a 1714 mile (2758.42 km) pipeline system, is one of the largest natural gas pipelines in the US and provides over 5 billion ft3/d of bi-directional natural gas transportation service between the Rockies, Appalachia and the northeastern United States.
The sale, previously flagged by Reuters, will provide about US$685 million in after-tax proceeds, the company said. Phillips 66 shares were off less than 1% at US$136.82 in morning trading.
Privately owned Tallgrass Energy operates the pipeline and owns the remaining 75% stake.
The transaction is expected to close on Friday.
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World Pipelines’ June 2024 issue
The June 2024 issue of World Pipelines includes a keynote section on hydrogen pipeline transport, in which Contributing Editor Gordon Cope offers a broad look at the global hydrogen pipeline market, and Atmos International discusses modelling pure hydrogen pipelines. Also in the issue: technical articles on subsea survey, pigging tool performance, HDD operations for the Trans Mountain Expansion project, and more.