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Released October 28, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Phillips 66 (NYSE:PSX) (Houston, Texas) and its spinoff Phillips 66 Partners (NYSE:PSXP) are intent on growing their holdings in multiple oil and gas sectors. The companies are underway with several pipelines, terminals, fractionators and refining projects. In the just-passed third quarter, Phillips 66 had capital expenditures (capex) of $867 million, including $569 million for growth projects. The company's adjusted capex for the full year is expected to be between $3.3 billion and $3.6 billion.
In the company's recent third-quarter earnings conference call, Phillips 66 Chief Executive Officer Greg Garland gave updates on some of the company's projects, starting with the Gray Oak Pipeline. Garland said, "Phillips 66 Partners has started line-fill and commissioning activities on the Gray Oak Pipeline. The 900,000-barrel-per-day (BBL/d) pipeline will transport crude oil from the Permian and the Eagle Ford to the Texas Gulf Coast, including our Sweeny Refinery. We expect to begin initial service in November and anticipate full service in the first quarter of 2020." The pipeline will connect with multiple refining and export facilities in the Corpus Christi, Texas, area. Construction on the 850-mile pipeline began last year, with multiple general contractors working on the project. For more information, see Industrial Info's project report.
Among the destinations of the Gray Oak Pipeline will be the South Texas Gateway Terminal in Ingleside, Texas, at the mouth of Corpus Christi Bay, which Phillips 66 is constructing with Buckeye Partners (NYSE:BPL) (Houston). The crude oil loading and unloading terminal will have two deepwater docks and more than 7 million barrels of storage capacity. Construction is expected to kick off soon, and the terminal is expected to start up in mid-2020. For more information, see Industrial Info's project report.
Among Phillips 66's other pipeline projects is the Liberty Pipeline, which will provide transport of crude oil from the Rockies and Bakken production areas to Cushing, Oklahoma. Construction on the 350,000-BBL/d pipeline is expected to kick off early next year and begin service in 2021. For more information, see Industrial Info's project reports on the North Dakota, South Dakota, Kansas, Nebraska and Oklahoma portions of the pipeline.
Garland said, "Liberty will have access to the Gulf Coast via the Red Oak Pipeline. ... The Red Oak pipeline system will connect Cushing and the Permian Basin to multiple locations along the Gulf Coast, including Corpus Christi, Ingleside, Houston and Beaumont." Construction on the Red Oak is expected to begin next summer, and it is expected to begin service in 2021. The pipeline will transport up to 400,000 BBL/d. For more information, see Industrial Info's project reports on the Texas and Oklahoma portions of the pipeline.
Garland also talked about natural gas liquids-related projects. He said, "We're adding three fractionators at the Sweeny Hub, each with a capacity of 150,000 BBL/d. Fracs 2 and 3 are on track to start up in the fourth quarter of 2020. The recently sanctioned Frac 4 is expected to be completed in the second quarter of 2021. ... Upon completion of Frac 4, the Sweeny Hub will have 550,000 BBL/d of fractionation capacity." For more information, see Industrial Info's project reports on Frac 2, Frac 3 and Frac 4.
Also on the company's books are refining projects, including those at its Lake Charles, Louisiana, and Ponca City, Oklahoma, facilities. Garland said, "At the Lake Charles Refinery, we started up the Phillips 66 Partners 25,000-BBL/d isomerization unit, increasing our production of higher-octane gasoline and blend components." The project kicked off in the first half of last year, with Burns & McDonnell Incorporated (Kansas City, Missouri) providing engineering services. For more information, see Industrial Info's project report. At its Ponca City Refinery, the company will upgrade Fluid Catalytic Cracker (FCCU) 4 by replacing the regenerator cyclones that have reached their end of life. Hargrove Engineers and Constructors (Houston) is providing engineering, procurement and construction on the project, which is expected to be completed in fourth-quarter 2020. For more information, see Industrial Info's project report.
Phillips 66 reported third-quarter 2019 net income of $712 million, compared with $1.49 billion in the year-prior quarter. However, excluding special items of $690 million, the quarter's adjusted earnings of $1.4 billion are more in line with adjusted earnings of $1.46 billion in third-quarter 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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 recent third-quarter earnings conference call, Phillips 66 Chief Executive Officer Greg Garland gave updates on some of the company's projects, starting with the Gray Oak Pipeline. Garland said, "Phillips 66 Partners has started line-fill and commissioning activities on the Gray Oak Pipeline. The 900,000-barrel-per-day (BBL/d) pipeline will transport crude oil from the Permian and the Eagle Ford to the Texas Gulf Coast, including our Sweeny Refinery. We expect to begin initial service in November and anticipate full service in the first quarter of 2020." The pipeline will connect with multiple refining and export facilities in the Corpus Christi, Texas, area. Construction on the 850-mile pipeline began last year, with multiple general contractors working on the project. For more information, see Industrial Info's project report.
Among the destinations of the Gray Oak Pipeline will be the South Texas Gateway Terminal in Ingleside, Texas, at the mouth of Corpus Christi Bay, which Phillips 66 is constructing with Buckeye Partners (NYSE:BPL) (Houston). The crude oil loading and unloading terminal will have two deepwater docks and more than 7 million barrels of storage capacity. Construction is expected to kick off soon, and the terminal is expected to start up in mid-2020. For more information, see Industrial Info's project report.
Among Phillips 66's other pipeline projects is the Liberty Pipeline, which will provide transport of crude oil from the Rockies and Bakken production areas to Cushing, Oklahoma. Construction on the 350,000-BBL/d pipeline is expected to kick off early next year and begin service in 2021. For more information, see Industrial Info's project reports on the North Dakota, South Dakota, Kansas, Nebraska and Oklahoma portions of the pipeline.
Garland said, "Liberty will have access to the Gulf Coast via the Red Oak Pipeline. ... The Red Oak pipeline system will connect Cushing and the Permian Basin to multiple locations along the Gulf Coast, including Corpus Christi, Ingleside, Houston and Beaumont." Construction on the Red Oak is expected to begin next summer, and it is expected to begin service in 2021. The pipeline will transport up to 400,000 BBL/d. For more information, see Industrial Info's project reports on the Texas and Oklahoma portions of the pipeline.
Garland also talked about natural gas liquids-related projects. He said, "We're adding three fractionators at the Sweeny Hub, each with a capacity of 150,000 BBL/d. Fracs 2 and 3 are on track to start up in the fourth quarter of 2020. The recently sanctioned Frac 4 is expected to be completed in the second quarter of 2021. ... Upon completion of Frac 4, the Sweeny Hub will have 550,000 BBL/d of fractionation capacity." For more information, see Industrial Info's project reports on Frac 2, Frac 3 and Frac 4.
Also on the company's books are refining projects, including those at its Lake Charles, Louisiana, and Ponca City, Oklahoma, facilities. Garland said, "At the Lake Charles Refinery, we started up the Phillips 66 Partners 25,000-BBL/d isomerization unit, increasing our production of higher-octane gasoline and blend components." The project kicked off in the first half of last year, with Burns & McDonnell Incorporated (Kansas City, Missouri) providing engineering services. For more information, see Industrial Info's project report. At its Ponca City Refinery, the company will upgrade Fluid Catalytic Cracker (FCCU) 4 by replacing the regenerator cyclones that have reached their end of life. Hargrove Engineers and Constructors (Houston) is providing engineering, procurement and construction on the project, which is expected to be completed in fourth-quarter 2020. For more information, see Industrial Info's project report.
Phillips 66 reported third-quarter 2019 net income of $712 million, compared with $1.49 billion in the year-prior quarter. However, excluding special items of $690 million, the quarter's adjusted earnings of $1.4 billion are more in line with adjusted earnings of $1.46 billion in third-quarter 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 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.
