Phillips 66 commits $3 billion to midstream growth

Phillips 66 received approval from its board of directors to move forward with a fractionator and an LP gas export terminal on the Gulf Coast. According to a press release, the two projects represent an investment of more than $3 billion as part of the company’s midstream growth program.

Phillips 66’s Sweeny Fractionator One will be located in Old Ocean, Texas, close to the company’s Sweeny Refinery. It will supply purity natural gas liquids (NGL) products to the petrochemical industry and heating markets. Y-grade (mixed NGL) supply to the fractionator will come from nearby major pipelines, including the recently completed Sand Hills Pipeline. Phillips 66 expects the 100,000-barrel-per-day NGL fractionator to start up in the third quarter of 2015.

The company’s LP gas export terminal will be located at the site of the company’s existing marine terminal in Freeport, Texas. According to a press release, this site will leverage Phillips 66 midstream, transportation and storage infrastructure to supply petrochemical, heating and transportation markets globally. The terminal will have an initial export capacity of 4.4 million barrels per month, the company says.

Each of these projects will include NGL storage and additional pipelines with connectivity to market hubs in Mont Belvieu, Texas. Also included with these projects is a 100,000 barrel-per-day de-ethanizer unit that will be installed close to the Sweeny Refinery to upgrade domestic propane for export.

The two projects are in varying stages of development, Phillips 66 adds. For the Sweeny Fractionator One, site preparation is progressing, critical equipment has been ordered, and expansion of supporting infrastructure has begun. The company continues to work with the appropriate agencies to secure necessary permits for the Freeport LP gas export terminal, and its construction will commence once all permits are approved.