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Released May 02, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Phillips 66 (NYSE:PSX) (Houston, Texas) really had to do very little to improve its first-quarter results this year from last year, when Winter Storm Uri forced the shutdown of its facilities in Texas. Moving forward, Phillips 66 appears to have set aside pipeline projects that were put on hold at the onset of the COVID-19 pandemic and is focusing instead on its joint-venture chemical business with Chevron Corporation (NYSE:CVX) (San Ramon, California), Chevron Phillips Chemical Company (CPChem) (The Woodlands, Texas), and the conversion of a California refinery to produce renewable fuels.
Mark Lashier, Phillips 66's chief operating officer who is set to take the reins as chief executive in July, spoke of the company's projects, starting with one that began construction before the pandemic, the addition of a fourth fractionator at its Sweeny Hub in Old Ocean, Texas. "We expect Frac 4 to start up in the third quarter," said Lashier. "The total project cost for Frac 4 is expected to be approximately $525 million."
The 150,000-barrel-per-day (BBL/d) Sweeny Hub fractionator will bring the facility's total fractionation capacity to 550,000 BBL/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for the detailed report.
Lashier also spoke of the company's Rodeo Renewed project at its refinery in Rodeo, California, near San Francisco. The project entails converting the 120,000-BBL/d refinery to produce renewable fuels such as renewable diesel, renewable gasoline and sustainable jet fuel from used cooking oil, fats, greases and soybean oil. Lashier said, "We continue to progress Rodeo Renewed and expect to complete the final steps of the permitting process this quarter. Completion of the conversion project is expected in early 2024. Rodeo will initially have over 50,000 BBL/d of renewable fuel production capacity. In addition, the conversion will reduce emissions from the facility." Subscribers to Industrial Info's Alternative Fuels Project Database can click here for the report.
Phillips 66 is increasing its focus on CPChem, which is underway with various projects, including world-scale facilities in Qatar and on the Texas Gulf Coast. Lashier said that CPChem's total operational budget for 2022 is $1.4 billion, which includes $1 billion for growth projects with an average expected return above 20%. At the Sweeny Hub, CPChem is underway with a new world-scale 1-hexene unit, which will produce 266,000 tons per year of this component of high-performance polyethylene. The unit is expected to start up in 2023. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the report.
CPChem also is expanding its propylene-splitting capacity by 1 billion pounds per year with a new unit at its Cedar Bayou facility in Baytown, Texas. The project is nearing the construction phase and is expected to be completed in the summer of 2023. Subscribers can click here for the report.
CPChem continues to develop two world-scale ethylene and derivatives units in Ras Laffan, Qatar, and on the Texas Gulf Coast.
The Ras Laffan project is expected to begin construction early next year, for completion in 2025. Subscribers can click here for related reports.
Lashier said a final investment decision for the U.S. Gulf Coast project is expected later this year. While the ethylene production capacity of the plant remains uncertain at this point, the facility could potentially double the capacity of its Cedar Bayou facility by adding 4.4 billion pounds per year. Subscribers can click here for the report.
Several smaller projects also can be found at Phillips 66's traditional refineries throughout the country. Examples include the revamp of the HF alkylation unit and upgrade of the fluid catalytic cracking unit (FCCU) at the company's refinery in Billings, Montana. The revamp of the 6,500-BBL/d alkylation unit will increase propane recovery and improve alkylate, while the FCCU upgrade will help extend catalyst life and improve production. Both projects are expected to be completed early this summer. Subscribers can click here the report on the alkylation unit and here for the report on the FCCU.
The company reported first-quarter 2022 earnings of $582 million, compared with a net loss of $654 million in first-quarter 2021.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Mark Lashier, Phillips 66's chief operating officer who is set to take the reins as chief executive in July, spoke of the company's projects, starting with one that began construction before the pandemic, the addition of a fourth fractionator at its Sweeny Hub in Old Ocean, Texas. "We expect Frac 4 to start up in the third quarter," said Lashier. "The total project cost for Frac 4 is expected to be approximately $525 million."
The 150,000-barrel-per-day (BBL/d) Sweeny Hub fractionator will bring the facility's total fractionation capacity to 550,000 BBL/d. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for the detailed report.
Lashier also spoke of the company's Rodeo Renewed project at its refinery in Rodeo, California, near San Francisco. The project entails converting the 120,000-BBL/d refinery to produce renewable fuels such as renewable diesel, renewable gasoline and sustainable jet fuel from used cooking oil, fats, greases and soybean oil. Lashier said, "We continue to progress Rodeo Renewed and expect to complete the final steps of the permitting process this quarter. Completion of the conversion project is expected in early 2024. Rodeo will initially have over 50,000 BBL/d of renewable fuel production capacity. In addition, the conversion will reduce emissions from the facility." Subscribers to Industrial Info's Alternative Fuels Project Database can click here for the report.
Phillips 66 is increasing its focus on CPChem, which is underway with various projects, including world-scale facilities in Qatar and on the Texas Gulf Coast. Lashier said that CPChem's total operational budget for 2022 is $1.4 billion, which includes $1 billion for growth projects with an average expected return above 20%. At the Sweeny Hub, CPChem is underway with a new world-scale 1-hexene unit, which will produce 266,000 tons per year of this component of high-performance polyethylene. The unit is expected to start up in 2023. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the report.
CPChem also is expanding its propylene-splitting capacity by 1 billion pounds per year with a new unit at its Cedar Bayou facility in Baytown, Texas. The project is nearing the construction phase and is expected to be completed in the summer of 2023. Subscribers can click here for the report.
CPChem continues to develop two world-scale ethylene and derivatives units in Ras Laffan, Qatar, and on the Texas Gulf Coast.
The Ras Laffan project is expected to begin construction early next year, for completion in 2025. Subscribers can click here for related reports.
Lashier said a final investment decision for the U.S. Gulf Coast project is expected later this year. While the ethylene production capacity of the plant remains uncertain at this point, the facility could potentially double the capacity of its Cedar Bayou facility by adding 4.4 billion pounds per year. Subscribers can click here for the report.
Several smaller projects also can be found at Phillips 66's traditional refineries throughout the country. Examples include the revamp of the HF alkylation unit and upgrade of the fluid catalytic cracking unit (FCCU) at the company's refinery in Billings, Montana. The revamp of the 6,500-BBL/d alkylation unit will increase propane recovery and improve alkylate, while the FCCU upgrade will help extend catalyst life and improve production. Both projects are expected to be completed early this summer. Subscribers can click here the report on the alkylation unit and here for the report on the FCCU.
The company reported first-quarter 2022 earnings of $582 million, compared with a net loss of $654 million in first-quarter 2021.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
