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Released February 01, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--In the recently passed fourth quarter of 2022, Phillips 66 (NYSE:PSX) (Houston, Texas) completed one of its biggest projects, the construction of a fourth fractionator at its Sweeny Hub in Old Ocean, Texas. But the company isn't standing still and has its sights set on two world-scale chemical projects on the Texas Gulf Coast and in Qatar through its joint venture with Chevron (NYSE:CVX) (San Ramon, California), Chevron Phillips Chemical Company (CP Chem) (The Woodlands, Texas).
In this week's earnings-related conference call, Phillips 66 Chief Executive Officer Mark Lashier discussed the company's past and future project activity. Phillips 66 completed the 150,000-barrel-per-day (BBL/d) fourth fractionator at the Sweeny Hub in the fourth quarter. Lashier said, "Our total Sweeny Hub fractionation capacity is 550,000 BBL/d, making it the second-largest fractionation hub in the U.S." Construction on the fractionator began in 2019, but was placed on hold in 2020 when it was about 25% complete due the economic uncertainty brought on by the COVID-19 pandemic. Engineering, procurement and construction company S&B Engineers and Constructors Limited (Houston, Texas) resumed work in the summer of 2021, putting the project on track for completion in late 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for the full report.
In addition to pausing underway projects, the pandemic also appears to have changed Phillips 66's planned investments. The company was planning to construct some large oil pipelines, but these were deferred during the pandemic and do not appear to be kicking off anytime soon. While projects are planned for the company's refineries throughout the U.S., Phillips 66's prime projects these days involve CP Chem and a renewable fuels project in California.
Lashier said, "In chemicals, CP Chem is pursuing a portfolio of high-return projects, enhancing its asset base as well as optimizing its existing operations. This includes construction of a second world-scale unit to produce 1-hexene in Old Ocean, Texas, and the expansion of propylene splitting capacity at its Cedar Bayou facility." Construction of the 1-hexene unit kicked off in late 2021. Upon completion, the unit will have a production capacity of 266,000 tons per year. Construction of the propylene splitter at the Cedar Bayou facility near Baytown, Texas, kicked off last year. Both units are expected to be completed in the second half of this year. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the report on the 1-hexene unit and here for the report on the propylene splitter.
But even bigger things await CP Chem. The company, with QatarEnergy (Doha, Qatar), has made positive final investment decisions on world-scale petrochemical complexes on the Texas Gulf Coast and in Ras Laffan, Qatar. Lashier said, "CP Chem will have a 51% interest in the $8.5 billion integrated polymers facility on the U.S. Gulf Coast. The Golden Triangle polymers facility will include a 4.6 billion-pounds-per-year ethane cracker and two high-density polyethylene units with a combined capacity of 4.4 billion pounds per year. Operations are expected to begin in 2026." Subscribers can click here for related project reports.
Lashier continued: "In January, the Ras Laffan chemical project was approved. CP Chem will own a 30% interest in the $6 billion integrated polymers complex. The plant will include a 4.6 billion-pound-per-year ethane cracker and two high-density polyethylene units with a total capacity of 3.7 billion pounds per year. Startup is expected in late 2026." Subscribers can click here for more details.
Outside of CP Chem, Phillips 66's largest project is its Rodeo Renewed project at its refinery in the San Francisco, California, area. The project entails converting the 120,000-BBL/d traditional refinery to produce 680 million gallons per year of renewable diesel, renewable gasoline, and sustainable jet fuel from used cooking oil, fats, greases and soybean oils. The facility is expected to begin production in the first quarter of next year. Subscribers to Industrial Info's Alternative Fuels Project Database can click here for the full report.
Among the company's traditional refinery projects is the upgrade of a delayed coker unit at its refinery in Westlake, Louisiana. The upgrade will allow the unit to process lower-cost fluid catalytic cracking (FCC) slurry oil. In addition, a bulging coke drum will be replaced. The project is set to begin in the coming months. Subscribers can click here for more information.
Subscribers to Industrial Info's GMI Database can click here for a look at reports for all of the projects discussed in this article and click here for the related plant profiles.
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, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
In this week's earnings-related conference call, Phillips 66 Chief Executive Officer Mark Lashier discussed the company's past and future project activity. Phillips 66 completed the 150,000-barrel-per-day (BBL/d) fourth fractionator at the Sweeny Hub in the fourth quarter. Lashier said, "Our total Sweeny Hub fractionation capacity is 550,000 BBL/d, making it the second-largest fractionation hub in the U.S." Construction on the fractionator began in 2019, but was placed on hold in 2020 when it was about 25% complete due the economic uncertainty brought on by the COVID-19 pandemic. Engineering, procurement and construction company S&B Engineers and Constructors Limited (Houston, Texas) resumed work in the summer of 2021, putting the project on track for completion in late 2022. Subscribers to Industrial Info's Global Market Intelligence (GMI) Refining Project Database can click here for the full report.
In addition to pausing underway projects, the pandemic also appears to have changed Phillips 66's planned investments. The company was planning to construct some large oil pipelines, but these were deferred during the pandemic and do not appear to be kicking off anytime soon. While projects are planned for the company's refineries throughout the U.S., Phillips 66's prime projects these days involve CP Chem and a renewable fuels project in California.
Lashier said, "In chemicals, CP Chem is pursuing a portfolio of high-return projects, enhancing its asset base as well as optimizing its existing operations. This includes construction of a second world-scale unit to produce 1-hexene in Old Ocean, Texas, and the expansion of propylene splitting capacity at its Cedar Bayou facility." Construction of the 1-hexene unit kicked off in late 2021. Upon completion, the unit will have a production capacity of 266,000 tons per year. Construction of the propylene splitter at the Cedar Bayou facility near Baytown, Texas, kicked off last year. Both units are expected to be completed in the second half of this year. Subscribers to Industrial Info's Chemical Processing Project Database can click here for the report on the 1-hexene unit and here for the report on the propylene splitter.
But even bigger things await CP Chem. The company, with QatarEnergy (Doha, Qatar), has made positive final investment decisions on world-scale petrochemical complexes on the Texas Gulf Coast and in Ras Laffan, Qatar. Lashier said, "CP Chem will have a 51% interest in the $8.5 billion integrated polymers facility on the U.S. Gulf Coast. The Golden Triangle polymers facility will include a 4.6 billion-pounds-per-year ethane cracker and two high-density polyethylene units with a combined capacity of 4.4 billion pounds per year. Operations are expected to begin in 2026." Subscribers can click here for related project reports.
Lashier continued: "In January, the Ras Laffan chemical project was approved. CP Chem will own a 30% interest in the $6 billion integrated polymers complex. The plant will include a 4.6 billion-pound-per-year ethane cracker and two high-density polyethylene units with a total capacity of 3.7 billion pounds per year. Startup is expected in late 2026." Subscribers can click here for more details.
Outside of CP Chem, Phillips 66's largest project is its Rodeo Renewed project at its refinery in the San Francisco, California, area. The project entails converting the 120,000-BBL/d traditional refinery to produce 680 million gallons per year of renewable diesel, renewable gasoline, and sustainable jet fuel from used cooking oil, fats, greases and soybean oils. The facility is expected to begin production in the first quarter of next year. Subscribers to Industrial Info's Alternative Fuels Project Database can click here for the full report.
Among the company's traditional refinery projects is the upgrade of a delayed coker unit at its refinery in Westlake, Louisiana. The upgrade will allow the unit to process lower-cost fluid catalytic cracking (FCC) slurry oil. In addition, a bulging coke drum will be replaced. The project is set to begin in the coming months. Subscribers can click here for more information.
Subscribers to Industrial Info's GMI Database can click here for a look at reports for all of the projects discussed in this article and click here for the related plant profiles.
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, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
