Phillips 66 Advances Major Global Growth Projects

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

Phillips 66 is advancing major growth projects. According to Industrial Info Resources data, there is $5 billion worth of projects worldwide attributed to the energy company, excluding two major joint-venture petrochemical facilities under construction.

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Phillips 66 Highlights and Major Growth Projects

According to Industrial Info Resources data, there is $5 billion worth of projects from Phillips 66 worldwide, excluding some joint-venture efforts. As part of its first-quarter earnings results and conference call April 26, the company announced that major growth projects both under development and under construction are progressing as planned.

This includes development of the Western Gateway Pipeline project, a joint venture with Kinder Morgan that is designed to supply refined products to West Coast Markets amid California refinery closures. The Industrial Info Resources Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database indicates the project is designed to transport 200,000 barrels per day (bpd) of refined fuels from Borger, Texas, to Phoenix, Arizona, and entails construction of new pump stations along the route and reversals of existing pipeline flows in the Midwest and Southern California.

"Regulations and fires have plagued California refiners in the last 18 months, resulting in 290,000 bpd in refinery closures and lower than anticipated utilization of remaining assets," said Hillary Stevenson, Vice President of Energy Intelligence for Industrial Info Resources. "Western Gateway will be key to reducing California's reliance on refined product imports."

View the related project reports here. For more on this, subscribers to IIR Energy's Breaking Energy News (BEN) can view the April 21, 2026, article - Phillips 66 and Kinder Morgan Greenlight 200,000 bpd Western Gateway Pipeline.

In the earnings call, Don Baldridge, executive vice president of Midstream and Chemicals for Phillips 66, said the steps moving forward are to complete joint-venture arrangements as well as execute transportation agreements with third-party shippers. "With successful conclusion of that work over the next couple of months, I would expect we would be in a position to FID [final investment decision] this project mid- to-late summer for a 2029 in-service date."

The project is a part of the company's Midstream growth plans, which Baldridge said entails adding gathering and processing capacity and ensuring downstream natural gas liquids midstream and fractionation/infrastructure are in place.

This includes capacity in the Permian Basin, which will be supported by another project progressing as planned: Phillips 66 confirmed the Iron Mesa Natural Gas Processing Plant, designed to process 300 million cubic feet per day, is on schedule for startup in first-quarter 2027. Click here for the detailed project report.

The company in February announced a $2.4 billion capital budget for 2026, including $1.3 billion for organic growth projects and $1.1 billion for sustained operations; $582 million in capital expenditures were deployed during the first quarter.

First-quarter net income of $207 million was down from $487 million year-over-year. The drop stems from a sharp decrease in commodity prices during the first quarter, the company said.

In the earnings conference call, Chief Executive Officer Mark Lashier said the fact that the majority of the company's assets are in the U.S., in addition to "pipeline connectivity to some of the lowest cost and most reliable hydrocarbon corridors in the world," has the company well-positioned to reliably support global energy demand--especially important as refining and petrochemical capacity is down due to the closure of the Strait of Hormuz.

CPChem Projects Also Advancing On Schedule

Two world-scale petrochemical facilities involving Phillips 66's 50:50 joint venture with Chevron--CPChem--and project partner QatarEnergy--are expected to reach full operations in 2027: one on the U.S. Gulf Coast in Texas and the other in Ras Laffan, Qatar.

QatarEnergy owns a 70% stake in the Qatar project, while CPChem has a 51% stake in the U.S. project.

U.K. Presence

But Phillips 66 also operates in the U.K., and its footprint includes the 245,000-bpd Humber refinery in Lincolnshire. The refinery is mere miles from the recently acquired Lindsey Refinery, which was mothballed in August 2025, according to an update to IIR's plant profile.

While Phillips 66 had previously said it will not restart "standalone refinery operations" at the site, storage and other infrastructure assets will be integrated into its Humber Refinery operations. Subscribers can read more at this BEN article: Phillips 66 Completes Buyout of U.K. Lindsey Oil Refinery.

Key Takeaways

• Industrial Info Resources is tracking billions' worth of active and planned projects attributed to Phillips 66.
• Major growth projects advancing as planned include a refined-product pipeline to serve California and the West Coast and a natural gas processing plant in the Permian Basin.
• $207 million: first-quarter net income is down from $487 million year-over-year.
• The company is well positioned to meet global energy demand during the Middle East war.

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About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).