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Released August 02, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--As Phillips 66 (NYSE:PSX) (Houston, Texas) diversifies from its traditional Refining business, the company showed progress on major growth projects in the second quarter of this year, particularly in the Midstream and Chemicals sectors. Phillips 66 reported a 98% utilization rate in its Refining segment, its highest ever. Industrial Info is tracking $1.76 billion in active Phillips 66 projects, not including several joint venture undertakings.
In the company's earnings conference call, Phillips 66 Chief Executive Officer Greg Garland said, "During the quarter, we made significant progress on several growth initiatives, reaching major milestones in key projects in Midstream, Chemicals and Refining. In Midstream, commercial operations started on the Bakken Pipeline [the overall name of the pipeline system that includes the Dakota Access Pipeline]. The Pipeline moves crude from the Bakken field in North Dakota to delivery points in Patoka, Illinois, and Nederland, Texas. Phillips 66 has a 25% interest in this joint venture." Construction on the controversial pipeline began in 2016 but was halted amid high-profile protests before President Donald Trump reinstated the project. The pipeline began flowing earlier this year. For more information, see Industrial Info's project reports on the North Dakota, South Dakota, Iowa and Illinois portions of the pipeline.
The completion of the Bakken system prompted changes at Phillips 66's crude oil terminal on the Texas Gulf Coast. "The Bakken Pipeline feeds our Beaumont terminal, which we continue to expand," said Garland. Phillips 66 recently completed the addition of 1.2 million barrels of storage at the terminal by constructing four additional tanks. For more information, see Industrial Info's project report. "As crude and product exports grow, Beaumont's well positioned to generate additional earnings," said Garland.
The company also is expanding its footprint in other aspects of the midstream sector. "We're currently evaluating opportunities to build additional NGL [natural gas liquids] fractionation capacity along the Gulf Coast," said Garland. "We plan to approve the project once commercial arrangements with NGL are finalized." The company is considering adding two 100,000-barrel-per-day (BBL/d) fractionation units to its existing Unit 1 at its Sweeny Refinery in Old Ocean, Texas. The addition of the first unit could begin as early as the first quarter of next year, followed by another unit a few years later. The projects have an estimated total investment value of $100 million each. For more information, see Industrial Info's project reports on the Unit 2 and Unit 3 fractionators.
"We expect construction to start this quarter on the second leg of the Bayou Bridge crude pipeline, which will extend the pipeline to St. James, Louisiana," said Garland. Phillips 66, along with joint owner Energy Transfer Partners LP (NYSE:ETP) (Newtown Square, Pennsylvania), plans to extend the Bayou Bridge Pipeline 160 miles from Lake Charles, Louisiana, to St. James to carry 280,000 BBL/d of crude oil. Construction on the $250 million project will be completed in the first quarter of next year. For more information, see Industrial Info's project report.
Phillips 66's joint venture company with Chevron Corporation (NYSE:CVX) (San Ramon, California), Chevron Phillips Chemical (CPChem), is progressing with work at its facility in Baytown, Texas. "In Chemicals, CPChem achieved a major milestone on the U.S. Gulf Coast petrochemicals project by reaching mechanical completion on the polyethylene units. Commissioning activities are progressing, and the two units should be fully operational later this quarter. The ethane cracker is scheduled for mechanical completion in the fourth quarter of this year," said Garland. Construction on the ethane-fed ethylene production unit began in 2014. The project has an estimated total investment value of $2.5 billion. For more information, see Industrial Info's project report.
Phillips 66 also is on its way to completing major projects in its traditional Refining segment. "At the Bayway and Wood River refineries, we're modernizing FCC [fluid catalytic cracking] units to increase clean product yield. Both projects are expected to complete in the first half of 2018," said Garland. Phillips 66 is upgrading the 42,000-BBL/d FCC unit at its Wood River Refinery in Roxana, Illinois, to process heavier crude feeds. For more information, see Industrial Info's project report. At the Bayway Refinery in Linden, New Jersey, Phillips 66 is modernizing the FCC unit to reduce emissions and increase gasoline yields by 4,000 BBL/d. For more information, see Industrial Info's project report.
Phillips 66 reported second-quarter 2017 net earnings of $550 million, compared with $496 million in second-quarter 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In the company's earnings conference call, Phillips 66 Chief Executive Officer Greg Garland said, "During the quarter, we made significant progress on several growth initiatives, reaching major milestones in key projects in Midstream, Chemicals and Refining. In Midstream, commercial operations started on the Bakken Pipeline [the overall name of the pipeline system that includes the Dakota Access Pipeline]. The Pipeline moves crude from the Bakken field in North Dakota to delivery points in Patoka, Illinois, and Nederland, Texas. Phillips 66 has a 25% interest in this joint venture." Construction on the controversial pipeline began in 2016 but was halted amid high-profile protests before President Donald Trump reinstated the project. The pipeline began flowing earlier this year. For more information, see Industrial Info's project reports on the North Dakota, South Dakota, Iowa and Illinois portions of the pipeline.
The completion of the Bakken system prompted changes at Phillips 66's crude oil terminal on the Texas Gulf Coast. "The Bakken Pipeline feeds our Beaumont terminal, which we continue to expand," said Garland. Phillips 66 recently completed the addition of 1.2 million barrels of storage at the terminal by constructing four additional tanks. For more information, see Industrial Info's project report. "As crude and product exports grow, Beaumont's well positioned to generate additional earnings," said Garland.
The company also is expanding its footprint in other aspects of the midstream sector. "We're currently evaluating opportunities to build additional NGL [natural gas liquids] fractionation capacity along the Gulf Coast," said Garland. "We plan to approve the project once commercial arrangements with NGL are finalized." The company is considering adding two 100,000-barrel-per-day (BBL/d) fractionation units to its existing Unit 1 at its Sweeny Refinery in Old Ocean, Texas. The addition of the first unit could begin as early as the first quarter of next year, followed by another unit a few years later. The projects have an estimated total investment value of $100 million each. For more information, see Industrial Info's project reports on the Unit 2 and Unit 3 fractionators.
"We expect construction to start this quarter on the second leg of the Bayou Bridge crude pipeline, which will extend the pipeline to St. James, Louisiana," said Garland. Phillips 66, along with joint owner Energy Transfer Partners LP (NYSE:ETP) (Newtown Square, Pennsylvania), plans to extend the Bayou Bridge Pipeline 160 miles from Lake Charles, Louisiana, to St. James to carry 280,000 BBL/d of crude oil. Construction on the $250 million project will be completed in the first quarter of next year. For more information, see Industrial Info's project report.
Phillips 66's joint venture company with Chevron Corporation (NYSE:CVX) (San Ramon, California), Chevron Phillips Chemical (CPChem), is progressing with work at its facility in Baytown, Texas. "In Chemicals, CPChem achieved a major milestone on the U.S. Gulf Coast petrochemicals project by reaching mechanical completion on the polyethylene units. Commissioning activities are progressing, and the two units should be fully operational later this quarter. The ethane cracker is scheduled for mechanical completion in the fourth quarter of this year," said Garland. Construction on the ethane-fed ethylene production unit began in 2014. The project has an estimated total investment value of $2.5 billion. For more information, see Industrial Info's project report.
Phillips 66 also is on its way to completing major projects in its traditional Refining segment. "At the Bayway and Wood River refineries, we're modernizing FCC [fluid catalytic cracking] units to increase clean product yield. Both projects are expected to complete in the first half of 2018," said Garland. Phillips 66 is upgrading the 42,000-BBL/d FCC unit at its Wood River Refinery in Roxana, Illinois, to process heavier crude feeds. For more information, see Industrial Info's project report. At the Bayway Refinery in Linden, New Jersey, Phillips 66 is modernizing the FCC unit to reduce emissions and increase gasoline yields by 4,000 BBL/d. For more information, see Industrial Info's project report.
Phillips 66 reported second-quarter 2017 net earnings of $550 million, compared with $496 million in second-quarter 2016.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
