Phillips 66 said it will buy EPIC NGL for $2.2 billion in a deal that will help the Houston oil refiner grow its Permian midstream business, reported the Wall Street Journal.

“The agreement for EPIC—which owns various subsidiaries and long-haul natural gas liquids pipelines, fractionation facilities and distribution systems—consists of two fractionators near Corpus Christi, Texas; approximately 350 miles of purity distribution pipelines; and an approximately 885-mile natural gas liquids pipeline that links production supplies in the Delaware, Midland and Eagle Ford basins to refinery complexes,” wrote the WSJ.

The deal is expected to “help Phillips’ per-share earnings immediately,” though its closing is subject to customary conditions.

Phillips said EPIC is in the process of increasing its pipeline capacity to 225 million barrels a day and has sanctioned a second expansion to increase capacity to 350 million barrels a day, according to the WSJ.

This past October, Phillips 66 said it would close its Los Angeles oil refinery in late 2025, citing “long-term uncertainty.” The facility supplied about 8% of California’s gasoline. Phillips 66 said it “will work with the state of California to supply fuel markets and meet ongoing consumer demand.”

According to a statement from the company, “As the California Energy Commission’s analysis has indicated, expanding supply capabilities will be critical. Phillips 66 supports these efforts and will work with California to maintain current levels and potentially increase supplies to meet consumer needs. The company will supply gasoline from sources inside and outside its refining network as well as renewable diesel and sustainable aviation fuels from its Rodeo Renewable Energy Complex in the San Francisco Bay area.”

Phillips 66 spokesperson Al Ortiz said that the company is not exiting California—he noted the company’s San Francisco refinery and other facilities remain open.