Phillips 66 is expanding its Sweeny Hub with two 150,000 barrel-per-day NGL fractionators, more storage capacity and associated pipeline infrastructure.
The project in Old Ocean, Texas, is expected to cost up to $1.5 billion and will begin commercial operations in late 2020.
Supply agreements have been secured for Y-grade NGL feedstock, including an agreement with DCP Midstream, which has an option to acquire up to a 30% ownership interest in the new fractionators.
Greg Garland, chairman and CEO of Phillips 66, says: ‘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.’
Once complete, the Sweeny Hub will have 400,000 barrels per day of NGL fractionation capacity and access to 15 million barrels of total storage capacity.