Phillips 66 Partners LP proposed cutting tariff rates to $3.90 a barrel to ship crude on its new 900,000-barrel-per-day (bbl/d) Gray Oak crude pipeline within points in Texas, according to filings on Nov. 20.
The company proposed both spot rates and committed rates of $3.90 a barrel to transport crude within Texas, down from the $4.75 rate it had set last month.
The rates, set to come into effect by Dec. 1, would apply only to accelerated commissioning service and are pending approval with Texas state regulators. Phillips 66 did not immediately respond to a request for comment.
The filings included a new origin point at Santa Rita, Texas, in Reagan County. It was not immediately clear what rates were for transport to delivery points in the Houston and Corpus Christi, Texas, areas.
The Gray Oak pipeline is the biggest of about three new pipelines connecting the Permian Basin, the nation's largest oil field, to the U.S. Gulf Coast.
Vessel-tracking and port data compiled by Refinitiv indicates China will import 867,300 bbl/d of U.S. crude oil in September, exceeding 653,870 bbl/d in August and 693,500 bbl/d in July.
Exports have shrunk from over 2.5 million bbl/d since the U.S. withdrew from a nuclear deal with Iran and reimposed sanctions in 2018. Still, Iran has been working to get around the measures and keep exports flowing.
For the month of August, natural gas prices were up about 46%, the most since September 2009, propped up by a surge in LNG exports and on concerns about tropical storms.