Phillips 66 announces Rodeo pipeline in the Permian

Houston’s Phillips 66 hopes to take advantage of West Texas’ booming Permian Basin by building the 130-mile Rodeo pipeline to the Midland area.

The project would focus on transporting oil from the surging Delaware Basin portion of the Permian that’s west of Midland. The pipeline would run from the northern portion of Reeves County and run through Loving and Winkler counties en route to terminals in the Odessa-Midland area.

The Reeves-Odessa Origination Project, nicknamed Rodeo, is slated for completion in the second half of 2018. Phillips 66 is not revealing project costs.

The pipeline initially would transport 130,000 barrels of crude daily and eventually ramp up to 450,000 barrels a day. The pipeline would be 130 miles long, but that’s not counting various laterals built off of the mainline.

Phillips 66 will build a new storage terminal near Odessa and Midland to service the pipeline. Phillips 66 currently is seeking oil producing customers in need of West Texas pipeline services.