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Released July 29, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--By all accounts, Phillips 66 (NYSE:PSX) (Houston, Texas) had a good second-quarter 2019. The company posted net earnings of $1.4 billion, compared with $204 million in the prior quarter.
During the quarter, Phillips 66 announced substantial new capital projects. In the company's recent conference call, Chief Executive Officer Greg Garland said, "We're executing a robust portfolio of midstream growth projects with attractive returns. These new projects will provide us with continued future earnings growth." Industrial Info is tracking $11.5 billion in active Phillips 66 projects, covering a range of industries, including pipelines, natural gas liquids [NGL] fractionation and refining.
Click on the image at right for a breakdown by industry of active Phillips 66 projects.
"During the quarter, we announced joint ventures to construct the Liberty and Red Oak crude oil pipeline systems. These projects are backed by long-term volume commitments. The Liberty Pipeline will provide transportation from the growing Rockies and Bakken production areas to Cushing, Oklahoma. Liberty will have access to the Gulf Coast via the Red Oak Pipeline," Garland said. The Liberty Pipeline is a 50:50 joint venture with Bridger Pipeline LLC (Casper, Wyoming). Construction on the 1,300-mile pipeline is expected to begin early next year. The pipeline will carry 350,000 barrels per day (BBL/d). Phillips 66 will construct and operate the pipeline. For more information, see Industrial Info's project reports on the North Dakota, South Dakota, Nebraska, Kansas and Oklahoma portions of the pipeline.
Garland continued: "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." The project is a 50:50 joint venture with Plains All American Pipeline LP (NYSE:PAA) (Houston). Construction on the 400,000-BBL/d, 430-mile pipeline is expected to begin in mid-2020 for completion in the first half of 2021. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline. Garland said, "Both pipelines are in supplemental open season, seeking additional commitments for the limited remaining capacity. The pipelines are targeted to begin initial service in the first quarter of 2021."
Phillips 66 Partners (NYSE:PSXP) (Houston) continues to construct the Gray Oak Pipeline. The 900,000-BBL/d pipeline will transport crude oil from the Permian and Eagle Ford to the Texas Gulf Coast, including the Sweeny Refinery in Old Ocean, Texas. Garland said, "We have received all major permits, acquired all right of way and installed 80% of the pipe. The project remains on track to start up in the fourth quarter of this year." Construction began in late 2018, with Pumpco Incorporated (Giddings, Texas) and MPG Pipeline Contractors LLC (Houston) as the general contractors. The pipeline has an estimated total investment value (TIV) of more than $2 billion. For more information, see Industrial Info's project report. "With Liberty, Red Oak, Gray Oak and our existing network of pipelines, we will serve all the key shale oil-producing regions, with connectivity to the major Gulf Coast market centers," said Garland.
Phillips 66 also is underway with major growth projects for NGL fractionation. Garland said, "We continue to expand our Sweeny Hub to meet increasing domestic NGL production and global market demand. We're moving forward with construction of a fourth fractionator that will have 150,000 BBL/d of capacity and is expected to cost approximately $500 million. Frac 4 is backed by customer commitments and is expected to be completed by the second quarter of 2021. Construction of fracs 2 and 3 is progressing well, and we're on track to start up in the fourth quarter of 2020. 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 Unit 2, Unit 3 and Unit 4.
Garland said, "In refining, Phillips 66 Partners recently completed construction of the 25,000-BBL/d isomerization unit at the Lake Charles [Louisiana] Refinery that will increase production of higher-octane gasoline blend components. This unit is expected to reach full production in the third quarter. Construction on the $250 million project began in the first half of last year, with Performance Contractors Incorporated (Baton Rouge, Louisiana) as the general contractor. For more information, see Industrial Info's project report.
Garland said, "At the Sweeny Refinery, we're upgrading the FCC [fluid catalytic cracker] to increase production of high-value petrochemical feedstocks and higher-octane gasoline. This project is on track to complete in the second quarter of 2020. For more information, see Industrial Info's project report.
Phillips 66 spent $408 million on growth projects in the second quarter.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight 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.
During the quarter, Phillips 66 announced substantial new capital projects. In the company's recent conference call, Chief Executive Officer Greg Garland said, "We're executing a robust portfolio of midstream growth projects with attractive returns. These new projects will provide us with continued future earnings growth." Industrial Info is tracking $11.5 billion in active Phillips 66 projects, covering a range of industries, including pipelines, natural gas liquids [NGL] fractionation and refining.
Click on the image at right for a breakdown by industry of active Phillips 66 projects."During the quarter, we announced joint ventures to construct the Liberty and Red Oak crude oil pipeline systems. These projects are backed by long-term volume commitments. The Liberty Pipeline will provide transportation from the growing Rockies and Bakken production areas to Cushing, Oklahoma. Liberty will have access to the Gulf Coast via the Red Oak Pipeline," Garland said. The Liberty Pipeline is a 50:50 joint venture with Bridger Pipeline LLC (Casper, Wyoming). Construction on the 1,300-mile pipeline is expected to begin early next year. The pipeline will carry 350,000 barrels per day (BBL/d). Phillips 66 will construct and operate the pipeline. For more information, see Industrial Info's project reports on the North Dakota, South Dakota, Nebraska, Kansas and Oklahoma portions of the pipeline.
Garland continued: "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." The project is a 50:50 joint venture with Plains All American Pipeline LP (NYSE:PAA) (Houston). Construction on the 400,000-BBL/d, 430-mile pipeline is expected to begin in mid-2020 for completion in the first half of 2021. For more information, see Industrial Info's project reports on the Oklahoma and Texas portions of the pipeline. Garland said, "Both pipelines are in supplemental open season, seeking additional commitments for the limited remaining capacity. The pipelines are targeted to begin initial service in the first quarter of 2021."
Phillips 66 Partners (NYSE:PSXP) (Houston) continues to construct the Gray Oak Pipeline. The 900,000-BBL/d pipeline will transport crude oil from the Permian and Eagle Ford to the Texas Gulf Coast, including the Sweeny Refinery in Old Ocean, Texas. Garland said, "We have received all major permits, acquired all right of way and installed 80% of the pipe. The project remains on track to start up in the fourth quarter of this year." Construction began in late 2018, with Pumpco Incorporated (Giddings, Texas) and MPG Pipeline Contractors LLC (Houston) as the general contractors. The pipeline has an estimated total investment value (TIV) of more than $2 billion. For more information, see Industrial Info's project report. "With Liberty, Red Oak, Gray Oak and our existing network of pipelines, we will serve all the key shale oil-producing regions, with connectivity to the major Gulf Coast market centers," said Garland.
Phillips 66 also is underway with major growth projects for NGL fractionation. Garland said, "We continue to expand our Sweeny Hub to meet increasing domestic NGL production and global market demand. We're moving forward with construction of a fourth fractionator that will have 150,000 BBL/d of capacity and is expected to cost approximately $500 million. Frac 4 is backed by customer commitments and is expected to be completed by the second quarter of 2021. Construction of fracs 2 and 3 is progressing well, and we're on track to start up in the fourth quarter of 2020. 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 Unit 2, Unit 3 and Unit 4.
Garland said, "In refining, Phillips 66 Partners recently completed construction of the 25,000-BBL/d isomerization unit at the Lake Charles [Louisiana] Refinery that will increase production of higher-octane gasoline blend components. This unit is expected to reach full production in the third quarter. Construction on the $250 million project began in the first half of last year, with Performance Contractors Incorporated (Baton Rouge, Louisiana) as the general contractor. For more information, see Industrial Info's project report.
Garland said, "At the Sweeny Refinery, we're upgrading the FCC [fluid catalytic cracker] to increase production of high-value petrochemical feedstocks and higher-octane gasoline. This project is on track to complete in the second quarter of 2020. For more information, see Industrial Info's project report.
Phillips 66 spent $408 million on growth projects in the second quarter.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, eight 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.
