Phillips 66 Keeps Eye on the Future With Continued Growth Projects Across All Areas

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Researched by Industrial Info Resources (Sugar Land, Texas)--Phillips 66 (NYSE:PSX) (Houston, Texas) has a presence in virtually all segments of the oil and gas sector, including terminals, natural gas liquids (NGL) fractionation, pipelines and refining. The company had invested $1.3 billion in capital expenditures through the third quarter of this year and plans for capital spending of between $2 billion and $3 billion in 2018. Industrial Info is tracking more than $2 billion in active Phillips 66 projects.

In a recent conference call, Phillips 66 Chief Executive Officer Greg Garland said, "We made progress this quarter advancing key growth and return projects. In Midstream, we continue to invest in the Beaumont [Texas]terminal to increase our storage and export capabilities. We're building an additional 3.5 million barrels of crude storage, which is expected to be in service by the end of 2018. We're also expanding the terminal's export facilities from 400,000 barrels a day (BBL/d) to 600,000 BBL/d." During the third quarter, Phillips 66 completed the construction of four tanks at the terminal to increase storage capacity of crude oil products. Chicago Bridge & Iron Company (NYSE:CBI) (The Hague, Netherlands) acted as a contractor on the project. For more information, see Industrial Info's project report.

Also discussed was activities by DCP Midstream LP (NYSE:DCP) (Denver, Colorado),the company's midstream joint venture with Spectra Energy Corporation (Houston) (owned by Enbridge Incorporated (NYSE:ENB) (Calgary, Alberta). "DCP Midstream is increasing the Sand Hills NGL Pipeline capacity from 280,000 BBL/d to 365,000 BBL/d and is expected to be in service by the end of the year," said Garland. The Sand Hills Pipeline runs 720 miles from the Permian and Eagle Ford formations to Mont Belvieu, Texas. "DCP plans to further expand the capacity to 450,000 BBL/d in the second half of 2018." Construction on the expansion project is set to kick off in the first quarter of next year and be completed in the summer. The project has an estimated total investment value of $60 million. For more information, see Industrial Info's project report.

Even further expansion could be in the works for Sand Hills. DCP Midstream continues to perform an economic evaluation to lay approximately 600 miles of 20-inch pipeline loops, connecting those constructed in next year's expansion. The project would increase Sand Hills' capacity from 450,000 BBL/d to 550,000 BBL/d and would kick off in 2019. For more information, see Industrial Info's project report.

DCP also is a partner with Kinder Morgan Incorporated (NYSE:KMI) (Houston) and Targa Resources Partners (NYSE:NGLS) (Houston) on the Gulf Coast Express natural gas pipeline, which will run from the Permian Basin to the natural gas hub in Agua Dulce, Texas. The 42-inch-diameter pipe will transport up to 1.7 billion cubic feet per day of natural gas. Construction on the project is planned to kick off in the second quarter of next year and be completed in the second half of 2019. For more information, see Industrial Info's project report.

"In refining, we're progressing return projects to include clean product yields. A diesel recovery project in the Ponca City [Oklahoma] Refinery is on track to start up in the fourth quarter." Wood Group Mustang Incorporated (Houston) provided engineering work on the project, which will increase efficiency in the 86,000-BBL/d crude topping unit. For more information, see Industrial Info's project report.

"We're modernizing FCC [fluid catalytic cracker] units at both the Bayway and Wood River refineries," said Garland. "We expect these projects to be completed in the first half of 2018." 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.

Last week, Phillips 66 received a tax break on work to improve crude oil processing and sulfur recovery at its refinery in Billings, Montana. The project qualified for a tax break in Yellowstone County as an expanding business venture. Among the projects occurring at the refinery was a vacuum unit replacement that replaced the existing 25,000-BBL/d vacuum unit with a larger one of approximately 35,000 BBL/d to recover a larger proportion of gasoline and diesel products. For more information, see Industrial Info's project report. Also completed was a revamp of the 20,000-BBL/d FCC unit to increase capacity by 2,000 to 4,000 BBL/d. For more information, see Industrial Info's project report.

Phillips 66 is performing project justification for construction of an NGL fractionator addition at its facility in Old Ocean, Texas. The unit would have a capacity of 100,000 BBL/d, and construction on it could begin in the middle of next year and wrap up in early 2019. For more information, see Industrial Info's project report.

Phillips 66 reported net earnings of $823 million in third-quarter 2017, compared with $550 million in third-quarter 2016. The company's Refining segment reported earnings of $550 million, compared with $224 million in third-quarter 2016, as distillate and gasoline were up significantly in the wake of Hurricane Harvey, which hit the Texas Gulf Coast in late August.

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.