Phillips 66 sets $2.6-billion capex budget for 2026

The company's strategic investments include the Iron Mesa gas plant, Coastal Bend pipeline expansion, and a new fractionator, alongside refining projects like the Humber gasoline upgrade project.

Dec. 15, 2025

2 min read

Phillips 66 aims to expand midstream and refining projects with a $2.6-million 2026 capital budget that includes $1.1 billion for sustaining capital and $1.3 billion for growth capital.

In the midstream segment, the capital budget of $1.1 billion includes $400 million for sustaining projects and $700 million for growth projects. In a Dec. 15 release, Phillips 66 said the projects “organically advance the company’s integrated NGL wellhead-to-market strategy by increasing gas processing, pipeline, and fractionation capacity in key basins.”

The growth capital spend in midstream includes:

The Iron Mesa gas processing plant, a 300 MMcfd gas processing plant in Goldsmith, Ector County, Tex., in the Permian basin—the company’s largest in the region. The plant is expected to begin operations in first-quarter 2027.
The Coastal Bend NGL pipeline expansion (previously known as EPIC NGL), which increases capacity to 350,000 b/d from 225,000 b/d, while enhancing connectivity between production in the Permian and Eagle Ford basins to fractionators in Corpus Christi, Tex., and Sweeny, Tex. The expansion is expected to be completed in fourth-quarter 2026.
A proposed fractionator in Corpus Christi, Tex., adding 100,000 b/d of NGL fractionation capacity. The project increases bidirectional access for Y-grade and purities between Corpus Christi, Sweeny, and Mont Belvieu. Final investment decision is expected in early 2026, with project completion expected in 2028.

In the refining segment, Phillips 66 plans to invest about $1.1 billion, including $590 million for sustaining capital and $520 million for growth projects. The growth capital spend includes:

The newly announced Humber gasoline quality improvement project, a multiyear investment Phillips 66 said will enable production of higher-quality gasoline, aiding in greater access to higher-value global markets. Startup is targeted for second-quarter 2027. The Humber Refinery is sited on the east coast of England in North Lincolnshire, UK, about 180 miles north of London.
Over 100 low-capital, high-return projects to improve market capture focused on crude flexibility, feedstock optimization and clean product yield improvements.

Phillips 66’s proportionate share of capital spending by its joint venture, Chevron Phillips Chemical Company LLC (CPChem), is expected to total $680 million and be self-funded. This includes $200 million for sustaining capital and $480 million for growth projects.

CPChem’s growth capital will continue to fund the construction of petrochemical complexes through joint ventures on the US Gulf Coast and in Ras Laffan, Qatar. The complexes are expected to start up in 2026 and early 2027, respectively.