Phillips 66 plans gas plant, fractionator projects for 2028

Phillips 66 is moving forward with the Zeus Gas Plant and a third Coastal Bend Fractionator, two projects that will advance its integrated wellhead-to-market strategy, expanding gas processing capacity in the Permian and NGL fractionation capabilities on the Gulf Coast.

Zeus will be a 300-million-cu.-ft.-per-day (MMcf/d) gas processing facility in the Permian and will include the new Midland Express (MEX) Pipeline, a 45-mile, 20-in. line integrating Phillips 66’s Permian Basin gathering systems. Expected to come online with the Zeus processing plant, MEX will be able to move up to 230 MMcf/d of wellhead gas and provide future bidirectional flexibility between multiple processing facilities.

The third Coastal Bend Fractionator, previously referenced as Corpus Christi Fractionator, or BTT2, will be a 100,000-barrels-per-day (bpd) natural gas liquids (NGL) fractionator in Robstown, Texas, including NGL purity pipeline expansion and water treatment facilities.

Both projects are expected to be online in 2028.

“Zeus Gas Plant and a third Coastal Bend Fractionator will strengthen our ability to move growing Permian volumes across an integrated value chain, from the wellhead to key market centers,” says Don Baldridge, executive vice president of midstream at Phillips 66. “These projects will enhance system connectivity, increase processing and fractionation capacity, and position us to serve customers while capturing additional value across our midstream network.”

Zeus Gas Plant and the third Coastal Bend Fractionator are included in Phillips 66’s capital spending program and fall within the company’s stated $2.0 billion to $2.5 billion capital spending range. This is consistent with Phillips 66’s commitment to reduce debt to $17 billion by year-end 2027 and return more than 50 percent of net operating cash flow, excluding working capital, to shareholders.

The projects will support growing Permian production from Phillips 66 customers’ dedicated acreage by adding the processing and fractionation capacity needed to move increasing volumes efficiently through Phillips 66’s integrated system, the company says. With Permian production expected to grow over the next five years, Zeus and the third Coastal Bend Fractionator will help connect advantaged supply to downstream assets and premium markets.

In other news, the company’s board of directors appointed Greg Hayes to serve as lead independent director.

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