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Phillips 66 to quadruple NGLs capacity at Sweeny hub
HOUSTON, June 13, 2018 (PCW) -- Phillips 66 announced today that it will spend an estimated $1.5 billion to build two new 150,000 barrel/day NGL fractionators in Old Ocean, TX along with additional NGL storage capacity and associated pipeline infrastructure.
The expansion of the Sweeny hub is expected to begin commercial operations in late 2020 and will help absorb rapidly growing Permian Basin NGL production.
The hub currently has one 100,000 barrel/day fractionator (Phillips 66 Partners' Sweeny Fractionator One), 200,000 barrels/day of export capacity, and access to 9 million barrels of gross NGL storage capacity at nearby Clemens Caverns, also owned by Phillips 66 Partners. The expansion will bring storage capacity to about 15 million barrels.
Phillips 66 has already secured Y-grade supply agreements, including an agreement with DCP Midstream, which has an option to acquire up to a 30 percent ownership in the new fractionators.
The purified NGL products will be sold to US Gulf petrochemical and fuel manufacturers or exported.
“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,” said Phillips 66 chairman and CEO Greg Garland. -- David Barry