Phillips 66 a diversified power manufacturing and logistics firm, introduced it’s continuing with an enlargement of the corporate’s Sweeny Hub. This mission consists of the development of two 150,000 barrel-per-day (BPD) pure gasoline liquids (NGL) fractionators in Old Ocean, Texas, extra NGL storage capability, and related pipeline infrastructure. The mission is predicted to value as much as $1.5 billion and start business operations in late 2020.
“We are happy to maneuver ahead with the Sweeny Hub enlargement, a key a part of our Midstream progress technique that additional optimizes our built-in NGL worth chain,” mentioned Greg Garland, chairman and CEO of Phillips 66. “The Sweeny Hub is strategically positioned to offer fractionation capability for quickly rising Permian Basin NGL manufacturing and entry to U.S. Gulf Coast petrochemical, fuels and LPG export markets.”
Supply agreements have been secured for Y-grade NGL feedstock, together with an settlement with DCP Midstream LP (NYSE: DCP) which has an choice to accumulate as much as a 30 p.c possession curiosity within the new fractionators.
“The mixture of DCP’s gathering, processing and pipeline providers with Phillips 66’s fractionation, storage and export capabilities gives Permian producers a full-service wellhead to market resolution,” mentioned Garland.
The Sweeny Hub at present has 100,000 BPD of fractionation capability via Phillips 66 Partners’ Sweeny Fractionator One, 200,000 BPD of LPG export functionality, and entry to 9 million barrels of gross NGL storage capability on the close by Phillips 66 Partners’ (NYSE: PSXP) Clemens Caverns. Upon completion of the enlargement, the Sweeny Hub can have 400,000 BPD of NGL fractionation capability and entry to 15 million barrels of complete storage capability. The enlargement is predicted to lead to greater than 25 new full-time jobs and roughly 2,000 construction-related jobs in Brazoria County.
Phillips 66 is a diversified power manufacturing and logistics firm. With a portfolio of Midstream, Chemicals, Refining, and Marketing and Specialties companies, the corporate processes, transports, shops and markets fuels and merchandise globally. Phillips 66 Partners, the corporate’s grasp restricted partnership, is integral to the portfolio. Headquartered in Houston, the corporate has 14,500 workers dedicated to security and working excellence. (Source: Phillips 66)
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