Energy manufacturing and logistics company Phillips 66 has decided to proceed with an expansion of its natural gas liquids (NGL) project in Sweeny, Texas, US, with a $1.5bn investment.
As part of the expansion, the company will build two NGL fractionators in Old Ocean, Texas, as well as additional NGL storage capacity and associated pipeline infrastructure.
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The company expects to begin commercial operations at the project in late-2020.
Phillips 66 chairman and CEO Greg Garland said: “We are pleased to move forward with the Sweeny Hub expansion, a key part of our Midstream growth strategy that further optimises our integrated NGL value chain.
“The Sweeny Hub is strategically positioned to provide fractionation capacity for rapidly growing Permian Basin NGL production and access to US Gulf Coast petrochemical, fuels and LPG export markets.”
The project will expand the fractionation capacity of the Sweeny Hub to 400,000 barrels per day (bpd) of NGL and provide access to 15 million barrels of total storage capacity.
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By GlobalDataPhillips 66 has secured supply agreements for Y-grade NGL feedstock, including a deal with DCP Midstream, which has an option to buy up to a 30% ownership interest in the new fractionators.
Garland added: “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.”
The project will generate more than 25 new full-time jobs, as well as around 2,000 jobs during construction in Brazoria County.
