Phillips 66 Builds a New Energy Artery Along the Gulf

The $2.2 billion EPIC deal deepens Phillips 66’s Gulf Coast reach and reshapes how U.S. natural gas liquids move from basin to world markets

2 Apr 2025

Phillips 66 has completed its $2.2bn acquisition of EPIC NGL, adding nearly 900 miles of pipelines and fractionation assets along the US Gulf Coast as it expands its position in the natural gas liquids market.

The deal gives the Houston-based refiner and midstream operator greater control over NGL flows from the Permian Basin to downstream markets and export terminals, strengthening its logistics network at a time of rising US production.

The EPIC system includes two fractionators near Corpus Christi with a combined capacity of about 170,000 barrels a day, as well as high-purity product pipelines and connections to export facilities. The network currently transports roughly 175,000 barrels a day of NGLs, with capacity expected to rise to 225,000 barrels a day by the end of 2025 and to about 350,000 barrels a day by late 2026.

“This acquisition strengthens our value chain and supports long-term growth,” said Don Baldridge, executive vice-president for midstream and chemicals at Phillips 66. “We’re enhancing our ability to deliver energy products where they’re needed, quickly, safely and reliably.”

The transaction builds on a series of recent investments by Phillips 66 aimed at expanding its midstream and downstream operations. The company took a stake in DCP Midstream in 2023 and acquired Pinnacle Midstream assets last year, moves that signalled a greater focus on infrastructure tied to NGLs and petrochemicals rather than solely on refining.

Natural gas liquids, which include ethane, propane and butane, are used both as fuels and as feedstocks for petrochemical production. Demand has been supported by growing US shale output and by exports to Asia and Latin America, where consumption of plastics and industrial materials continues to rise.

By integrating EPIC’s assets, Phillips 66 increases its fractionation capacity and gains additional optionality over how products are routed to domestic customers or overseas markets. Analysts say such flexibility is increasingly valuable as energy companies seek to manage price volatility and shifting trade flows.

While the company faces the near-term task of integrating the assets into its existing network, the acquisition underlines Phillips 66’s strategy of building scale in logistics and processing to support longer-term growth in NGL production and exports.