Phillips 66, Energy Transfer Partners, L.P., and Sunoco Logistics Partners L.P. announced last week that they have formed a joint venture to construct the Bayou Bridge pipeline that will deliver crude oil from the Phillips 66 and Sunoco Logistics terminals in Nederland, Texas, to Lake Charles, Louisiana.

Phillips 66 holds a 40 percent interest in the joint venture and Energy Transfer and Sunoco Logistics each hold a 30 percent interest. Sunoco Logistics will be the operator of the system.

“This project is the logical next step in our development of logistical infrastructure to move crude oil to market centers across the U.S.,” said Greg Garland, chairman and CEO of Phillips 66, “and we believe that it will be a critical conduit for our shippers to transport multiple grades of crude oil to the major refining market in Louisiana. The Bayou Bridge pipeline, combined with the storage and logistics capabilities of our Beaumont Terminal, provides enhanced opportunities to deliver North American crudes into the Louisiana market that is heavily dependent today on marine and rail delivery of crude oil.”

“We are pleased to partner with Energy Transfer and Phillips 66 on the Bayou Bridge pipeline,” said Michael Hennigan, president and CEO of Sunoco Logistics. “We believe being connected to our 25 million barrel Nederland crude terminal on the Gulf Coast greatly benefits this project.”

Construction is underway on the Nederland to Lake Charles segment of the pipeline, which will be 30-inch diameter and is expected to begin commercial operations in the first quarter of 2016. The companies will also launch a binding expansion open season to assess additional shipper interest for service with connectivity to existing terminal infrastructure and refineries in and around the St. James area. The results of the expansion open season will be used to determine the size of the pipeline to St. James, which has a forecasted service date in the second half of 2017.