From Business Wire
Phillips 66 (NYSE: PSX), a diversified energy manufacturing and logistics company, today announced it is proceeding with an expansion of the company’s Sweeny Hub. This project includes the construction of two 150,000 barrel-per-day (BPD) natural gas liquids (NGL) fractionators in Old Ocean, Texas, additional NGL storage capacity, and associated pipeline infrastructure. The project is expected to cost up to $1.5 billion and begin commercial operations in late 2020.
“We are pleased to move forward with the Sweeny Hub expansion, a key part of our Midstream growth strategy that further optimizes our integrated NGL value chain,” said Greg Garland, chairman and CEO of Phillips 66. “The Sweeny Hub is strategically positioned to provide fractionation capacity for rapidly growing Permian Basin NGL production and access to U.S. Gulf Coast petrochemical, fuels and LPG export markets.”
Supply agreements have been secured for Y-grade NGL feedstock, including an agreement with DCP Midstream LP (NYSE: DCP) which has an option to acquire up to a 30 percent ownership interest in the new fractionators.
“The combination of DCP’s gathering, processing and pipeline services with Phillips 66’s fractionation, storage and export capabilities offers Permian producers a full-service wellhead to market solution,” said Garland.
The Sweeny Hub currently has 100,000 BPD of fractionation capacity through Phillips 66 Partners’ (NYSE: PSXP) Sweeny Fractionator One, 200,000 BPD of LPG export capability, and access to 9 million barrels of gross NGL storage capacity at the nearby Phillips 66 Partners Clemens Caverns. Upon completion of the expansion, the Sweeny Hub will have 400,000 BPD of NGL fractionation capacity and access to 15 million barrels of total storage capacity. The expansion is expected to result in more than 25 new full-time jobs and approximately 2,000 construction-related jobs in Brazoria County.
About Phillips 66
Phillips 66 is a diversified energy manufacturing and logistics company. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties businesses, the company processes, transports, stores and markets fuels and products globally. Phillips 66 Partners, the company’s master limited partnership, is integral to the portfolio. Headquartered in Houston, the company has 14,500 employees committed to safety and operating excellence. Phillips 66 had $52 billion of assets as of March 31, 2018. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
Phillips 66
Jeff Dietert, 832-765-2297 (investors)
jeff.dietert@p66.com
or
Rosy Zuklic, 832-765-2297 (investors)
rosy.zuklic@p66.com
or
Rich Johnson, 832-765-1016 (media)
rich.johnson@p66.com
