Phillips 66 to Expand Sweeny Hub with 300,000 BPD of New Fractionation Capacity
June 13 2018 - 7:31AM
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.
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE
"SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION
REFORM ACT OF 1995
This news release contains certain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, which are intended to be covered by the safe harbors
created thereby. Words and phrases such as “is anticipated,” “is
estimated,” “is expected,” “is planned,” “is scheduled,” “is
targeted,” “believes,” “continues,” “intends,” “will,” “would,”
“objectives,” “goals,” “projects,” “efforts,” “strategies” and
similar expressions are used to identify such forward-looking
statements. However, the absence of these words does not mean that
a statement is not forward-looking. Forward-looking statements
relating to Phillips 66’s operations (including joint venture
operations) are based on management’s expectations, estimates and
projections about the company, its interests and the energy
industry in general on the date this news release was prepared.
These statements are not guarantees of future performance and
involve certain risks, uncertainties and assumptions that are
difficult to predict. Therefore, actual outcomes and results may
differ materially from what is expressed or forecast in such
forward-looking statements. Factors that could cause actual results
or events to differ materially from those described in the
forward-looking statements include fluctuations in NGL, crude oil,
and natural gas prices, and petrochemical and refining margins;
unexpected changes in costs for constructing, modifying or
operating our facilities; unexpected difficulties in manufacturing,
refining or transporting our products; lack of, or disruptions in,
adequate and reliable transportation for our NGL, crude oil,
natural gas, and refined products; potential liability from
litigation or for remedial actions, including removal and
reclamation obligations under environmental regulations; limited
access to capital or significantly higher cost of capital related
to illiquidity or uncertainty in the domestic or international
financial markets; and other economic, business, competitive and/or
regulatory factors affecting Phillips 66’s businesses generally as
set forth in our filings with the Securities and Exchange
Commission. Phillips 66 is under no obligation (and expressly
disclaims any such obligation) to update or alter its
forward-looking statements, whether as a result of new information,
future events or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20180613005576/en/
Phillips 66Jeff Dietert, 832-765-2297
(investors)jeff.dietert@p66.comorRosy Zuklic, 832-765-2297
(investors)rosy.zuklic@p66.comorRich Johnson, 832-765-1016
(media)rich.johnson@p66.com
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