June 14 Reuters U.S. oil refiner Phillips 66 said on Friday it would sell its 25 stake in the Rockies Express Pipeline REX for about 1.28 billion, including debt, to a subsidiary of Tallgrass Energy.

This sale is an important step in our commitment to deliver over 3 billion in asset divestitures, Phillips 66 CEO Mark Lashier said in a statement.

REX, a 1,714mile 2758.42 km pipeline system, is one of the largest natural gas pipelines in the U.S. and provides over 5 billion cubic feet per day of bidirectional natural gas transportation service between the Rockies, Appalachia and the northeastern United States.

The sale, previously flagged by Reuters, will provide about 685 million in aftertax proceeds, the company said. Phillips 66 shares were off less than 1 at 136.82 in morning trading.

Privately owned Tallgrass Energy operates the pipeline and owns the remaining 75 stake.

The transaction is expected to close on Friday.

Reporting by Seher Dareen and Vallari Srivastava in Bengaluru; Editing by Sriraj Kalluvila

Source Reuters