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UPDATE: P66’s earnings down 58%; LPG export terminal on track for 4Q startup

HOUSTON, January 29, 2016 (PCW) – Phillips 66 on Friday reported fourth-quarter earnings of $650 million, down 58.8% from the $1.578 billion reported in the prior quarter, due to lower earnings across all of its segments.

The first segment of the Bayou Bridge Pipeline joint venture with Sunoco Logistics is also expected to begin service by the end of the first quarter. The pipeline connects P66’s and Sunoco Logistics’ terminals in Nederland, Texas, to St. James, Louisiana. The first segment will deliver crude from Nederland to Lake Charles, Louisiana.

Meanwhile, a final investment decision on a second fractionator at the Sweeny Hub wil be made in the third quarter, company executives said during its earnings call Friday. P66 delayed its FID on Sweeny Frac 2 from last year to this year.

Finally, executives also reiterated they haven’t ruled out another greenfield ethane cracker in the US of the Middle East in the post-2020 time frame. The timing of an FID, however, was still not pinpointed.

P66’s Chemicals segment, which reflects its investment in Chevron Phillips Chemical, saw adjusted earnings of $182 million, down 33% compared with adjusted earnings of $272 million in the third quarter.

CPChem's Olefins and Polyolefins business saw quarterly earnings of $181 million, down $80 million from 3Q 2015 due to reduced margins and lower equity earnings. Turnaround and maintenance activity in the fourth quarter increased operating costs and decreased global utilization for the segment to 92%, compared with 94% in 3Q 2015.

CPChem's Specialties, Aromatics and Styrenics business saw adjusted earnings of $9 million in the quarter, a decrease of $8 million due to lower earnings because of planned turnarounds and lower margins. – Samantha Hartke