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Released August 02, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As Phillips 66 (NYSE:PSX) (Houston, Texas) approaches the completion of a fourth natural gas liquids fractionator at its Sweeny Hub in Texas, the company is taking on new on projects. However, the company is taking a different tack on some of these, focusing on chemical projects through Chevron Phillips Chemical Company (CPChem) (The Woodlands, Texas), its joint venture with Chevron Corporation (NYS:CVX) (San Ramon, California), as well as a large renewable fuels undertaking in California.
In the company's recent earnings conference call, Chief Executive Officer Mark Lashier said the fourth fractionator at the Sweeny Hub was on track to start up late this quarter. Lashier said the cost of the projects was expected to come in at about $525 million. Construction on the unit began in 2019. Phillips 66 interrupted the work in early 2020 as COVID-19 began to affect markets, and work was resumed in early 2021. Frac 4 will add 150,000 barrels per day (BBL/d) of fractionation capacity to the Sweeny Hub, bringing the total capacity to 550,000 BBL/d. Subscribers to Industrial Info's Refining Project Database can click here for the detailed project report.
Phillips 66's Refining segment shone brightly in the second quarter, rising from $140 million in pre-tax income in first-quarter 2022 to $3.1 billion in the second quarter, thanks to higher realized margins. While the company prepares for some traditional refining projects, such as a gasoline hydrotreater upgrade at its Wood River Refinery in Illinois and a fluid catalytic cracking unit upgrade at the Ferndale Refinery in Washington (see project reports), one of its largest projects is for the production of renewable fuels at its Rodeo Refinery, near San Francisco, California.
Lashier said, "In Refining, we made a final investment decision to move forward with our Rodeo Renewed project to convert our San Francisco refinery into one of the world's largest renewable fuels facilities. The project is expected to cost approximately $850 million and begin commercial operations in the first quarter of 2024." Upon completion, Rodeo will produce approximately 680 million gallons per year of renewable diesel, renewable gasoline and sustainable aviation fuel from used cooking oil, fats, greases and soybean oils. Subscribers to Industrial Info's Alternative Fuels Project Database can click here for more details.
Phillips 66 is ramping up chemical investments through its CPChem venture. Lashier said the joint venture's total capital budget for 2022 was $1.4 billion, with $1 billion going toward growth projects. "This includes growing its normal alpha olefins business with a second world-scale unit to produce 1-hexene, a critical component of high-performance polyethylene," said Lashier. "Construction is underway on the 586 million-pound-per year unit located in Old Ocean, Texas." This project is expected to wrap up in 2023. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the project report.
CPChem also is building a new propylene splitter at its Cedar Bayou facility in Texas that will expand capacity by 1 billion pounds per year. The project is expected to be completed next summer. Subscribers can click here for more details.
CPChem recently announced plans to double its polyalphaolefins capacity in Belgium to approximately 265 million pounds per year, with startup expected in 2024. The project is expected to kick off later this year. For more information, subscribers can click here and see July 7, 2022, article - CPChem to Double Polyalphaolefins Output at Belgian Plant.
But these projects are dwarfed by plans to build two world-scale petrochemical facilities in Ras Laffan, Qatar, and a still-pending location on the U.S. Gulf Coast. The facilities will produce ethylene and polyethylene from ethane feedstock. The Qatar project is expected to kick off next year. Lashier said a final investment decision was expected on the Gulf Coast project later this year. This project could potentially duplicate the company's petrochemical plant in Cedar Bayou, which produces 4.4 billion pounds of ethylene per year. Subscribers can click here for details of the Ras Laffan project and here for the Gulf Coast project.
Boosted by refining margins, Phillips 66 reported second-quarter 2022 earnings of $3.2 billion, compared with $296 million in the prior-year quarter.
Click here for a look at all of the projects discussed in this article and here for the plant profiles.
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.
In the company's recent earnings conference call, Chief Executive Officer Mark Lashier said the fourth fractionator at the Sweeny Hub was on track to start up late this quarter. Lashier said the cost of the projects was expected to come in at about $525 million. Construction on the unit began in 2019. Phillips 66 interrupted the work in early 2020 as COVID-19 began to affect markets, and work was resumed in early 2021. Frac 4 will add 150,000 barrels per day (BBL/d) of fractionation capacity to the Sweeny Hub, bringing the total capacity to 550,000 BBL/d. Subscribers to Industrial Info's Refining Project Database can click here for the detailed project report.
Phillips 66's Refining segment shone brightly in the second quarter, rising from $140 million in pre-tax income in first-quarter 2022 to $3.1 billion in the second quarter, thanks to higher realized margins. While the company prepares for some traditional refining projects, such as a gasoline hydrotreater upgrade at its Wood River Refinery in Illinois and a fluid catalytic cracking unit upgrade at the Ferndale Refinery in Washington (see project reports), one of its largest projects is for the production of renewable fuels at its Rodeo Refinery, near San Francisco, California.
Lashier said, "In Refining, we made a final investment decision to move forward with our Rodeo Renewed project to convert our San Francisco refinery into one of the world's largest renewable fuels facilities. The project is expected to cost approximately $850 million and begin commercial operations in the first quarter of 2024." Upon completion, Rodeo will produce approximately 680 million gallons per year of renewable diesel, renewable gasoline and sustainable aviation fuel from used cooking oil, fats, greases and soybean oils. Subscribers to Industrial Info's Alternative Fuels Project Database can click here for more details.
Phillips 66 is ramping up chemical investments through its CPChem venture. Lashier said the joint venture's total capital budget for 2022 was $1.4 billion, with $1 billion going toward growth projects. "This includes growing its normal alpha olefins business with a second world-scale unit to produce 1-hexene, a critical component of high-performance polyethylene," said Lashier. "Construction is underway on the 586 million-pound-per year unit located in Old Ocean, Texas." This project is expected to wrap up in 2023. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the project report.
CPChem also is building a new propylene splitter at its Cedar Bayou facility in Texas that will expand capacity by 1 billion pounds per year. The project is expected to be completed next summer. Subscribers can click here for more details.
CPChem recently announced plans to double its polyalphaolefins capacity in Belgium to approximately 265 million pounds per year, with startup expected in 2024. The project is expected to kick off later this year. For more information, subscribers can click here and see July 7, 2022, article - CPChem to Double Polyalphaolefins Output at Belgian Plant.
But these projects are dwarfed by plans to build two world-scale petrochemical facilities in Ras Laffan, Qatar, and a still-pending location on the U.S. Gulf Coast. The facilities will produce ethylene and polyethylene from ethane feedstock. The Qatar project is expected to kick off next year. Lashier said a final investment decision was expected on the Gulf Coast project later this year. This project could potentially duplicate the company's petrochemical plant in Cedar Bayou, which produces 4.4 billion pounds of ethylene per year. Subscribers can click here for details of the Ras Laffan project and here for the Gulf Coast project.
Boosted by refining margins, Phillips 66 reported second-quarter 2022 earnings of $3.2 billion, compared with $296 million in the prior-year quarter.
Click here for a look at all of the projects discussed in this article and here for the plant profiles.
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.
