Phillips 66 to expand Sweeny fractionation capacity by 300,000 b/d
June 13, 2018
Phillips 66 is proceeding with an expansion of existing midstream operations at Phillips 66 Partners LP’s Sweeny hub in Old Ocean, Tex.
The project includes construction of two new 150,000-b/d NGL fractionators in Old Ocean, additional NGL storage capacity, and associated pipeline infrastructure, Phillips 66 said.
Scheduled to begin commercial operations in late 2020, the estimated $1.5-billion expansion project will increase overall NGL fractionation capacity at Sweeny to 400,000 b/d and enable access to 15 million bbl of total storage capacity, according to the operator.
The Sweeny hub currently has 100,000 b/d of fractionation capacity through Phillips 66 Partners’ Sweeny Fractionator One, 200,000 b/d of LPG export capability, and access to 9 million barrels of gross NGL storage capacity at nearby Phillips 66 Partners’ Clemens Caverns (OGJ Online, Feb. 18, 2016; Dec. 8, 2015).
“We are pleased to move forward with the Sweeny hub expansion, a key part of our midstream growth strategy that further optimizes our integrated NGL value chain,” said Greg Garland, Phillip 66’s chairman and chief executive officer.
“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,” Garland added.
Alongside the planned expansion, Phillips 66 said it also has secured supply agreements for Y-grade NGL feedstock, including an agreement with DCP Midstream LP. which has an option to acquire up to a 30% ownership interest in the new fractionators.
The combination of DCP’s gathering, processing, and pipeline services with Phillips 66’s fractionation, storage, and export capabilities will offer Permian producers a full-service, wellhead-to-market solution, according to Garland.
Contact Robert Brelsford at [email protected].
