Energy manufacturer Phillips 66 (NYSE: PSX) today announced that it is
pursuing development of a 100,000 barrel-per-day natural gas liquids
(NGL) fractionator to be located in Old Ocean, Texas, close to the
company's Sweeny Refinery. The project would create more than 25
full-time jobs and hundreds of temporary construction jobs. If approved,
construction is expected to begin in the first half of 2014 with startup
expected by the second half of 2015.
"This project would enable us to take advantage of strong existing
midstream transportation and storage infrastructure along with
demonstrated operations excellence," said Phillips 66 Chairman and CEO
Greg Garland. "We see excellent market-facing opportunities to grow the
natural gas liquids business, and the chance to supply purity NGLs and
liquefied petroleum gas to the petrochemical industry and heating
Phillips 66 has a long history in the midstream business segment,
including NGL gathering, long haul transportation, storage and
fractionation. The company owns fractionation capacity at the Gulf Coast
Fractionators (GCF) and Enterprise fractionators in Mont Belvieu, Texas,
as well as the Conway fractionator in Kansas. Phillips 66 is the
operator of the GCF facility for the joint venture.
NGL feedstock for the Old Ocean fractionator project would be supplied
by several nearby pipelines avoiding the Mont Belvieu congestion, and
purified products produced by the fractionator would be marketed
primarily to petrochemical customers in the region with access to Mont
Belvieu. Phillips 66 recently sent notices seeking expression of
interest from potential Y-grade suppliers of NGL.
The project is currently in the engineering design phase, and the
company is in the process of filing for all applicable permits.
About Phillips 66
Headquartered in Houston, Phillips 66 is an advantaged downstream energy
company with segment-leading Refining and Marketing (R&M), Midstream and
Chemicals businesses. The company has 13,500 employees worldwide.
Phillips 66's R&M operations include 15 refineries with a net crude oil
capacity of 2.2 million barrels per day, 10,000 owned or supplied
branded marketing outlets, and 15,000 miles of pipeline systems. The
Midstream segment includes Phillips 66's 50 percent interest in DCP
Midstream, LLC, one of the largest natural gas gatherers and processors
in the United States, with 7.2 billion cubic feet per day of gross
natural gas processing capacity. Phillips 66's Chemicals business is
conducted through its 50 percent interest in Chevron Phillips Chemical
Company LLC, one of the world's top producers of olefins and polyolefins
with more than 30 billion pounds of net annual chemicals processing
capacity across its product lines. For more information, visit www.phillips66.com
or follow us on Twitter @Phillips66Co.
Dennis Nuss, 832-765-1850 (media)
Zuklic, 832-765-2297 (investors)