Phillips 66 Now Exporting US Oil to Canada
Phillips 66 joined a long list of companies exporting U.S. oil to Canada after it secured a license to do so last year, the company said late on Thursday.
The Houston-based company does not own a refinery in Canada, unlike other exporters like Valero Energy (VLO), which sends U.S. oil to its Quebec refinery.
"A Phillips 66 spokesman declined to say where in Canada its exports are headed and in what volume. He also didn't disclose if the oil will reach its destination via rail or barges."
"As a matter of practice, Phillips 66 does not comment on commercial activity," spokesman Dennis Nuss said.
The United States does not allow exports of its own oil, but makes exceptions such as barrels going to Canada and re-exports of foreign oil.
Nonetheless, the U.S. Department of Commerce has issued 43 licenses over the last six months allowing companies to export U.S. oil for use by Canadian refineries.
Earlier this year, Houston-based Phillips 66 came out in support of lifting the decades-old ban on exports. The company is among the few independent refiners advocating for exports while other refiners like Valero oppose them.
Phillips 66 Chief Executive Greg Garland said on Thursday the United States is unlikely to make meaningful policy changes anytime soon, with American consumers still concerned that exports will result in higher gasoline prices.
His company is making a bet on that projection. Phillips 66 plans to build a condensate splitter at its 247,000 barrels-per-day Sweeny refinery in Texas, which will allow it to process condensates into fuel components that can be exported.
Last week, Enbridge Inc became the first company to confirm plans to re-export Canadian oil from the United States followed by Valero Energy.
(Reporting by Selam Gebrekidan; Editing by Alden Bentley)