Phillips 66 has increased its spending on its midstream business, including pipelines and terminals to $1.6 billion.
The budget includes $601 million for Phillips 66 Partners and reflects expected joint venture-level financing to fund a portion of the Gray Oak Pipeline construction.
Midstream growth capital at the company includes 300,000 barrels per day of additional fractionation at the Sweeny Hub, as well as ongoing expansion of the Beaumont Terminal and pipeline investments providing integration across its value chain.
Growth capital at Phillips 66 Partners supports organic projects, including the Gray Oak Pipeline, South Texas Gateway Terminal, Clemens Caverns expansion, an isomerisation unit at the Phillips 66 Lake Charles Refinery and the Lake Charles products pipeline.
Greg Garland, chairman and CEO, says: ‘The 2019 capital programme reflects our strong portfolio of growth projects aligned with our long-term strategy. We are building out our integrated midstream infrastructure network, including pipelines, export facilities, and fractionation in support of growing hydrocarbon production in the key domestic shale plays. CPChem is also pursuing petrochemicals expansion opportunities on the US Gulf Coast.’