US-based energy manufacturing and logistics company Phillips 66 has secured approval from its board of directors to build Sweeny Fractionator One and the Freeport Liquefied Petroleum Gas (LPG) export terminal in Texas.
Both the projects represent an investment of approximately $3bn, and are part of the company’s midstream growth programme.
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Sweeny Fractionator One will supply natural gas liquids (NGL) products to the petrochemical industry and heating markets. It will be located in Old Ocean of Texas, near the firm’s Sweeny refinery, and is expected to begin operations in the third quarter of 2015.
The NGL fractionator will receive Y-grade (mixed NGL) supply from the recently completed Sand Hills Pipeline, in which Phillips 66 owns a direct one-third stake.
The Freeport LPG export terminal, which will leverage Phillips 66 midstream, transportation and storage infrastructure to supply petrochemical, heating and transportation markets, will be located at the firm’s existing marine terminal in Freeport, Texas.
With a ship loading rate of 36,000 barrels per hour, the terminal will have an initial export capacity of 4.4 million barrels per month.
The export terminal is expected to begin operations in mid-2016.
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By GlobalDataWith connectivity to market hubs in Mont Belvieu, Texas, each of these projects will include NGL storage and additional pipelines, and a 100,000bpd de-ethaniser unit will be installed close to the Sweeny refinery to upgrade domestic propane for export.
Phillips 66 commercial, marketing, transportation and business development executive vice president Tim Taylor said that the projects will allow the company to maximise existing infrastructure and position the firm for further growth.
"Given the anticipated growth in natural gas liquids production, we see substantial advantages in having fractionation and export facilities on the Gulf Coast outside of Mont Belvieu," Taylor added.
