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Frequently Asked Questions

What is the Gray Oak Pipeline?
The Gray Oak Pipeline will be a new, 850-mile-long pipeline transporting crude oil from the West Texas Permian Basin to destinations in the Corpus Christi, Sweeny and Freeport markets.

  • Gray Oak Pipeline LLC is a joint venture owned by Phillips 66 Partners, Marathon Petroleum and Enbridge. Phillips 66 will build and operate the pipeline, which is expected to be in service by the end of 2019.
  • The majority of the pipeline route follows existing infrastructure corridors minimizing short-term disruption and the pipeline’s overall footprint.
  • Supported by customer commitments, capacity of the pipeline will be 900,000 barrels per day.

What is the benefit of the Gray Oak Pipeline?
The Gray Oak Pipeline is being constructed to support the continued growth of the Texas energy industry, responding to market demand for transportation infrastructure to market centers on the U.S. Gulf Coast.

  • The Gray Oak Pipeline will provide a reliable method of delivering crude oil to the Corpus Christi and Sweeny/Freeport market centers from West Texas. Current pipeline takeaway is limited for transporting oil from the Permian basin, supplies are often bottlenecked and frequently shipped by truck.
  • This new pipeline means more oil will be transported via pipeline and not over the road, which will reduce highway traffic.
  • Greater access to a secure and reliable source of U.S. oil will contribute to the economic vitality of the state and improve the global competitiveness of the refining industry in Texas.
  • The economy will also benefit because some of the pipeline construction firms we are using are Texas-based companies.
  • Local economies will see long-term benefits from property tax revenues from the new pipeline. We will be creating full-time positions in some communities where storage facilities will be located. Local services like restaurants, hotels, grocery stores and gas stations can expect to see increases in business during the construction phase.

Why is a new pipeline necessary?

  • New pipelines ensure new energy being found and produced in North America can get from production sites to refineries, manufacturers and, ultimately, consumers in various forms. They provide a vital link between energy resources and refineries, helping increase U.S. energy security and independence.
  • The dramatic production growth in the Permian Basin has and will continue to have a direct impact on the improvement of the state’s economy. Pipelines like Gray Oak are important for maintaining oil and gas jobs and jobs in related fields for decades into the future.
  • In addition to jobs, taxes paid by companies producing, transporting and processing oil from the region will continue to pay taxes to support state and local governments as well as schools and important infrastructure improvements.
  • According to a new report from IHS Markit, the Permian Basin has the potential to nearly double crude oil production by 2023. This projected increase would account for 60 percent of the world’s production growth during that period.
  • On a local level, the Gray Oak Pipeline will positively impact Texas residents by strengthening the global competitiveness of refineries and other oil processing companies located in communities like Corpus Christi, Sweeny and Freeport.

Why not transport by rail or highways?

  • Pipelines are the safest, most efficient way to transport crude oil, according to the U.S. Department of Transportation.
  • Pipelines operate 24 hours a day and reduce the number of over-the-road trucks carrying oil on local highways and streets.

Where is the Gray Oak Pipeline located? What communities are affected?

  • The Gray Oak Pipeline will span from West Texas to market centers in Corpus Christi, and ultimately to Sweeny/Freeport.
  • The proposed route will have origination stations constructed in Reeves, Loving, Winkler, and Crane counties in West Texas, as well as from locations in the Eagle Ford production area in South Texas.

Gray Oak will pass through the following counties:

1. Reeves 8. Crockett 15. Frio 22.Karnes
2. Loving 9. Schleicher 16. La Salle 23. Goliad
3. Winkler 10. Sutton 17. McMullen 24. Victoria
4. Ward 11. Edwards 18. Live Oak 25. Jackson
5. Crane 12. Kinney 19. San Patricio 26. Wharton
6. Upton 13. Maverick 20. Nueces 27. Matagorda
7. Reagan 14. Zavala 21. Bee 28. Brazoria